Value Chain

Mining

Bauxite mining

Supplier (including off take) agreements and co-operation agreements with mine owners and operators to ensure global supply

Bauxite marketing/storage and freight

Purchase bauxite and sell to alumina refineries

  • Risk exposure reduced via matched physical contracts
  • Supply of bauxite used to originate off takes (of alumina)

Alumina refinery

Bauxite refined to alumina

  • Tolling arrangements/ off-take agreements ensuring steady supply
  • Refining enables ENR to secure supply, help swing production and manage efficiently shipping schedules

Alumina marketing/storage and freight

Purchase alumina for sale to aluminium smelters

Aluminium smelter

Alumina is processed into aluminium

ENR is looking currently into acquiring minority stakes in 3 Aluminium smelters in Indonesia, Vietnam and the Dominican Republic

Aluminium marketing/storage and freight

Purchase and sale of aluminium

  • Trade physical metal at prices relative to LME plus margin
  • Physical positions are hedged to reduce price risk
  • Looking into acquiring metals warehousing businesses to strengthen distribution and logistics

Consumer

Consumers include fabricators and end users

Risk Mitigation

Prevention, Prevention, Prevention

Our risk mitigation practice in ensuring timely, quality and right quantity of aluminium is based on prevention. Our Quality Assurance teams of experts ensure that quality is proactively monitored. We have experienced field operatives, supported by Independent Quality Agencies like SGS, Inspectorate etc., to ensure consistent quality of the product. Our control, supervision and management of our logistics supply chain process ensure that delivery occurs as expected.

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