Resco continues fight against alleged bauxite price gougingPublished on July 23rd, 2009 | By: email@example.com
Last August, the ACerS Bulletin published a story on the rising costs and unavailability of bauxite. Bauxite, the major source for the production of aluminum, is in high demand in developing countries, and China has staked its claim on the market.
Industrial Minerals reported that U.S. refractories producer Resco Products has refiled an amended proposed class action suit against Chinese producers and traders of refractory grade bauxite, naming Bosai Minerals Group and CMP Tianjin as the defendants.
Resco, which contends that the bauxite price fixing has existed since Jan. 1, 2003, was given the option to refile an amendment after the company’s first case, filed in 2006, was dropped this spring by the U.S. District Court of Pennsylvania for insufficient evidence.
In the amendment, Resco accuses Bosai and CMP (plus several other China-based bauxite producers) of conspiring to fix prices and control the supply of refractory bauxite to the U.S. and elsewhere, stating that, “the defendants have established an illegal cartel that is ongoing today.”
Of significance, particularly to refractory manufacturers requiring bauxite as raw material feedstock, is that there are only two main sources of refractory grade bauxite – China and Guyana – and the latter is operated by Bosai.
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