Production Cost Report | Energy, Metals and Minerals

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Aluminium Production Cost Breakup through Electrolytic Reduction

Details: Germany - based plant Q1 2024  | From $ USD

This report provides an exhaustive cost evaluation of Aluminium production process through electrolytic reduction. In this process, bauxites are mined from the ground and further processed to make alumina or aluminum oxide using Bayer’s process. In Bayer’s process, the crystallized aluminum hydrate found in the bauxite is dissolved in the concentrated caustic soda at higher temperatures.

When the temperature is decreased, and the concentration of the solution is increased again, the aluminum hydrate crystallizes, leaving behind the other elements undissolved, which are then removed. The thus obtained crystallized aluminum hydrate particles are dried and calcined, i.e., heated till the water is removed to obtain alumina.

The alumina is mixed with cryolite which provides a conducive environment and is sent to the reduction cells for the electrolytic reduction of alumina into aluminum. The molten aluminum is then sent to the cast house, where the aluminum is remelted to remove the other impurities. The resultant pure aluminum is stored in molds where it solidifies.

The project economic analysis provided in the report discusses a Germany-based plant:

  • Manufacturing Process
    • Process Flow
    • Material Flow
    • Material Balance
  • Raw Material and Product's Specifications
    • Raw Material Consumption
    • Product and Co-Product Generation
    • Capital Investment
  • Land and Site Cost
    • Offsites/Civil Works
    • Equipment Cost
    • Auxiliary Equipment Cost
    • Contingency
    • Engineering and Consulting Charges
    • Working Capital
  • Variable Cost
    • Raw Material
    • Utilities
  • Fixed Cost
    • Labor Requirement & Wages
    • Overhead Expenses
    • Maintenance Charges
  • Financing Costs
    • Interest on Working Capital
    • Interest on Loans
  • Depreciation Charges
  • General Sales and Admin Costs
  • Production Cost Summary
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Report Content

Key Process Information

Evaluation of significant technical parameters along with process descriptions such as:

  • Consumption of Raw Material
  • Product Creation
  • Block Flow Diagram
  • Description of the Manufacturing Facility

Utilities Consumption

Evaluation of utilities consumed during the entire process based on:

  • Consumption per unit of product generated
  • Utility cost split and share of each utility in the total cost

Process Flow Diagram

Representation of various operations involved including:

  • Step-wise process
  • Utility consumption in each operation

Capital Cost Analysis

In-depth analysis of costs involved in setting up a new manufacturing unit, including:

  • Cost of Building a Process Unit
  • Cost of Setting Up the Infrastructure
  • Working Capital
  • Commissioning & Start-Up of the Plant

Implementation Schedule

Time frame of the project design, which includes:

  • Plant Start-Up
  • Plant Construction
  • Engineering Fundamentals
  • Raw Material Procurement

Construction Cost Details

Detailed analysis of costs involved in the operation of various functional units in the process unit and infrastructure.

Operating Cost Analysis

Evaluation of costs associated with the production of the final product, namely:

  • Procurement of Raw Materials
  • Consumption of Utilities
  • Fixed Costs
  • Depreciation

Economic Analysis

Analysis of the way in which process economics are impacted by plant capacity.

  • Construction Cost
  • Working Capital
  • Fixed and Variable Operating Costs
  • Corporate Overhead
  • Depreciation

Customized Analyses

Detailed cost estimates of any industrial plant depending on your requirements, including plant capacity and location as per the need.

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