Photo by: Bloombeg
PERTH (miningweekly.com) – ASX-listed Alumina said on Friday that US major Alcoa’s decision to curtail one-million tonnes of refining capacity from the joint venture (JV) Alcoa World Alumina & Chemicals (AWAC), was expected to improve the JV’s cost position and ensure its continued competitiveness in the prevailing market conditions.
Alcoa on Thursday reported that it would permanently close its 269 000 t Warrick Operations smelter, in Indiana, by the end of this quarter, and would curtail the remaining 810 000 t of refining capacity at its Point Comfort operations, in Texas.
The latest cutbacks in production would result in a total of 3.1-million tonnes of AWAC refinery curtailments since September last year, which also included operations in Suriname.
Alumina CEO Peter Wasow said on Friday that AWAC was expected to record a post-tax charge of about $53-million in the fourth quarter of 2015 in relation to the latest curtailment, of which 45% would be cash related.
In addition, AWAC would also record a post-tax charge of about $12-million in the first half of 2016, all of which would be cash related.
Meanwhile, Alcoa on Friday confirmed that its Wagerup alumina refinery, in Western Australia, had not suffered any major infrastructure damage as a result of a bushfire that had swept through the area earlier this week.
Power distribution to the plant was interrupted on Thursday, but had been restored, and the refinery was operating at a reduced rate.
However, operations at the Willowdale mine remained suspended, and Alcoa was hoping to inspect the mine and associated infrastructure once the area had been deemed safe.