TORONTO (miningweekly.com) – US-based alumina and aluminium producer Alcoa would close or curtail 164 000 metric tons of smelting capacity in the US and Brazil as part of its smelting capacity review that was announced in May.
One potline representing 40 000 t at the Massena East plant, in New York, would be permanently closed, and the company had started to temporarily curtail 124 000 t at its smelters in Brazil. The closures and curtailments would be complete by the end of September.
“We committed in May to review our global smelting capacity for possible curtailment to maintain the company’s competitiveness. Aluminium prices, including premiums, have fallen to four-year lows and we continue to operate in an uncertain, volatile market,” global primary products president Bob Wilt said.
He added that the company would work with stakeholders in affected communities to reduce the impact of the closures and curtailments.
To date, Alcoa had announced closures or curtailments totalling 269 000 t of the 460 000 t placed under review in May. This included the permanent closure of 105 000 t of capacity announced earlier at Alcoa’s Baie-Comeau smelter, in Canada. The company also permanently closed its Fusina smelter, in Italy, representing 44 000 t that was not part of the May review.
Once the Massena and Brazil closures and curtailments were complete, Alcoa would have 16%, or 646 800 t, of smelting capacity idle.
Alcoa said its review of its primary metals operations was consistent with the company’s 2015 goal of lowering its position on the world aluminium production cost curve by 10% and on the alumina cost curve by 7%.
Total restructuring-related charges for the third quarter associated with the operations review, were expected to be between $5-million and $10-million after-tax, or $0.01 a share, of which about 50% would be noncash.
Spot aluminium prices traded at $1 839/t on the London Metals Exchange on Wednesday.