An improved water dispersible aluminum powder composition containing from 0.1% to less than 5% of a polyvinylpyrrolidone resin, and processes for its preparation are disclosed. This composition has the advantages that, in comparison to known compositions containing higher levels of polyvinylpyrrolidone, it can be more completely separated from hydrocarbons, and, when used as a water based slurry blasting agent sensitizer is effective in smaller diameter bore holes.