All of this is good news for aluminium producers who have access to high-quality bauxite able to support competitively priced alumina refineries and to low-cost power .
Some economists worry that contaminants from the messy process of refining bauxite into alumina -- a white powder that can be smelted into aluminum metal -- could jeopardize other businesses in the area .
Big alumina producers with little exposure to downstream aluminum production , such as australia 's alumina , should benefit as realized prices for the product rise .
In a deal valued at $ 4.9 billion , norsk will add a mammoth bauxite mine , the world 's biggest alumina refinery and a large smelter to its own substantial aluminium business .
A switch to market pricing , as contracts roll off , could squeeze margins for smelters without in-house alumina production , such as century aluminum .