Partner Ad Feature is produced by an advertiser with the specific intent to promote a product and is not produced by the CityAM team.

It sounds stupid, but materials have to come from somewhere. And once we’re done with those materials, they have to go somewhere… Following?

Yes, you are. But don’t dismiss this concept as trite. 

As global populations are predicted to increase by 2 billion (!) by 2050, growing demand for commodities will place further strain on an ever-depleting store of natural resources. Finite natural resources have never been under more threat than ever, and it’s going to get worse. Sustainable alternatives that ensure production of industrial and everyday necessities can continue in line with demand need to be conceived now, lest the problem exacerbates. 

An estimated 55-75 billion tons of bauxite is available in global resources today, where only 32,000,000 tons of bauxite reserves have been discovered. Circa 390,000 tons of bauxite were produced in 2021. Assuming production rates remain the same and resource availability meets the top end of predictions, bauxite resources have an absolute maximum of 192 years left before “extinction”. If you’re 75, that could sound like a distant future problem. But no, unfortunately the numbers are more alarming than they seem.

If we recalculate using only discovered reserves, rather than predicted, this end-of-life prediction drops down to 82.05 years. Now, if we consider that global demand for aluminium is on the up – predicted to increase by 80% – this “extinction” date starts creeping a lot closer than predicted… 60 years closer. Accounting for this 80% increase in demand, if solely supplied by bauxite mining, there’s only 20.5 years left producing aluminium from known reserves. Providing aluminium demand remains true to the 80% prediction and top end predictions of remaining bauxite resources are correct, primary bauxite has the maximum potential of only 107 years of existence. Important caveat — this number could easily be wrong. However, not from what we know today, and not likely by a large margin. 

This is a concern for the current generation, but an existential problem for future generations. Finding sustainable alternatives for producing aluminium can no longer be brushed off as a problem for the future. It’s imperative to solve now, before the clock strikes 12, and it’s our own kids who will suffer if we do not.

In 2021, on average, for every ton of aluminium produced 18 tons of CO2 was produced, totalling a grand 1.775 billion tons. It’s an incredibly dirty resource compared to almost any other base metal. Why? Because not only is it an energy intensive process to produce aluminium, but currently over 60% of the energy required is produced from burning coal, the dirtiest of all fossil fuels. In reality, electric cars might be cleaner than petrol ones, however when parts are made from primary aluminium, their carbon footprint could outweigh the benefits.

The problem is we need aluminium, and a lot of it. It’s one of the most important elements in our efforts to decarbonise our world. Its unique properties make it vital for electric vehicles, grid expansion, sustainable packaging, replacing of plastics, sustainable housing, renewable energy, and future potential innovations. It has to come from and go somewhere, and that process has to be clean. Or at the very least, MUCH cleaner.

That’s where recyclers like Romco come in. Aluminium is a highly recyclable metal with 75% of all aluminium ever produced still in use. With a global aluminium market value of $163.5bn (2018) predicted to reach $235.8bn in 2025 and a global demand growth of 80% by 2050, there’s money (as well as a 20.5 year deadline) in ensuring aluminium is produced by secondary sources. 

Romco is an emerging markets solution to aluminium’s recycling problem, specifically targeting Africa, whose share of the global recycling market sits at a small 1%. Given Africa’s fragmented recycling market, it’s unsurprising that much recyclable material is sat in landfills and used automotive/construction supplies. In Nigeria, it is estimated that only 13% of recyclable materials are salvaged from landfills in cities. By filling the gap in the market, Romco and other recyclers are working to reduce the negative environmental effects of primary production whilst leveraging the unlimited value that a recyclable commodity has, to meet the growing demand.

Is producing secondary aluminium cleaner than producing primary aluminium?  

Yes. Up to 20 times cleaner.

How so?

Secondary aluminium is produced using 95% less power and emits 95% less CO2. Rather than adding new material to the product cycle, each ton of secondary aluminium clears 7.2 cubic metres of landfill before entering a limitless use – recycle – repurpose cycle. Because of aluminium’s physical properties, quality of resulting products remains constant irrespective of cycle number – quality of tertiary aluminium is equivalent to nonary aluminium and so on. Transferring aluminium production to a circular economy ensures the environmental savings occur every loop; and when accounting for technological developments, energy efficiency will continue to improve (e.g. all factories and operations transport running from renewables) and less environmental damage will be inflicted by production and supply chains.

The Future of Secondary Recycling

As previously mentioned, there’s huge potential for growth in the recycled metal market. After all, bauxite reserves potentially only have a 20.5 year store left. Across our Nigerian and Ghanian factories, we currently have the capacity of up to 3000mt of secondary aluminium and 280mt of secondary copper per month and with the sophistication of our feedstock network, achieving over 100,000 tons a year by 2025 is not unrealistic. Much of Africa’s economy is reliant on the continent’s natural capital (mineral reserves, natural gas, oil and metal ores), and while the UN Environment Program is working to ensure these resources are used sustainably, presenting an alternative to bauxite mining that can offer equivalent capital, job prospects, and clear environmental and social benefits could turn the tide towards secondary aluminium production.

To learn how we are rising to the challenge of meeting the global commodities supply gap, please subscribe to our news at https://romcometals.com/news-insight/, or visit romcometals.com