Heh . . .back in RM2 days, there was an alchemy list in the Alchemy Companion I think was intended as a low level utility list for measuring and such. . . .but one spell on the list would separate out anything you cast it on into it's component compounds. . .I remember getting myself into a lot of trouble with that spell.
Aluminum refining needs a means to introduce heat without combustion. . .standard iron foundry techniques would just turn bauxite into aluminum oxide ash. Modern forges use electricity on ore submerged in a non reactive fluid to raise the heat enough to cause the ore to melt, but keep all oxygen out so you don't burn the aluminum as you smelt it.
With magic, the potential for heating without fire or air, or even just "Magic go rip me some aluminum out of that rock please" arises.
Heck, "I seal the smelter room, then have the fire elemental burn a pile of coal to exhaust all the oxygen in the chamber, then I have it melt the bauxite, the pure metal runs down this channel to pool over here. . .then I have the elemental damp down, and when the metal and room are cool enough, I break the seal to go in and collect the metal. I observe the process with a long eye spell to make sure I don't open the chamber prematurely."
Perhaps said Dwarves could come up with a way to harness Lava heat, and some airtight container to hold the ore, and smelt that way. . .like "Put all the bauxite in that Mithril crucible, seal it shut, then drop it into that pool of lava on the mithril chain. . .when the mithril crucible is evenly red, pull it back out, and wait for it to cool, and open it in half. . .the silvery layer in the resulting slug of rock slag is pure aluminum."
Or something like that. . . .it's not impossible, just not so easy.
Of course, if the dwarves have a megawatt generator in their lair, then aluminum smelting per the modern method is possible, but then, so are a lot of things.
In the end, if the GM wants aluminum, I'm sure they can come up with some sort of justification.
I just suspect the resulting product would be used for something other than weapons and armor.