Abstract
The aim of this chapter is to show the intricate relationship between bauxite resource, refinery technology, sustainability, and economics of (Bauxite and) Smelter Grade Alumina projects, and by doing so generate a better understanding of the underlying factors controlling the technical and economic success of these projects. The chapter opens with an overview of key aspects of project economics, including evaluation criteria, sensitivities, main scope items, project development stages and some of its main economic drivers. It also defines general and economic, and project specific assumptions of a reference project which is used throughout the chapter. The following two sections provide more in-depth analyses of capital and operating costs of a (Bauxite and) Smelter Grade Alumina project, including cost build-up aspects, and a detail breakdown of capital and operating costs of the reference project (based on economic conditions as at end 2016). The chapter concludes with a section covering plant and process capital and operating cost saving opportunities, e.g., through plant productivity and energy savings, Bayer Loop simplification and alternative plant design.