Malaysia’s recent setbacks have fueled talks that Malaysia might not be the long term solution to fill the bauxite supply gap.
Bauxite exports leapt 600 percent from 2014 to 2015, after experiencing a similar leap in bauxite exports from 2013 to 2014. This increase in production has also seen illegal bauxite mining increase substantially over the previous two years.
There has been some legislation passed to limit the illegal mining, with the three month moratorium on bauxite mining being the latest, but so far, the Malaysian government have been unable to arrest a single illegal miner. Pahang officials have also been embroiled with claims of corruption and residential dissent, with two more Pahang land and mines department officers recently charged for accepting bribes.
The vacuum left by Indonesia’s decision to ban exports of unprocessed ores led to the industry bestowing upon Malaysia the title of primary bauxite exporter, but infrastructural and legalistic shoddiness has cast aspersion over whether Malaysia can keep up their supply.
The countries that could pick up the bauxite slack include Australia, the second largest exporter of bauxite ore to China and China itself, whose domestic bauxite mining is beginning to pick up pace.