Alcoa Corporation (NYSE: AA) announced today that the Portland
Aluminium joint venture plans to restart 35,000 metric tons per
year (mtpy) of curtailed capacity at its aluminum smelter in the
State of Victoria in Australia.
The process to restart the capacity, which has been idle since
2009, will begin immediately, with metal production expected to
start in the third quarter of 2022.
Portland Aluminium is an unincorporated joint venture with
358,000 mtpy of total capacity, and Alcoa Corporation has 197,000
mtpy of consolidated capacity. Once the restart is complete,
Portland Aluminium will operate at approximately 95 percent of
total capacity and Alcoa Corporation will have approximately
186,000 mtpy of its consolidated capacity at Portland
operating.
“Restarting the idle capacity improves the smelter’s cost
structure, competitiveness and longer term sustainability,” said
Michael Gollschewski, Alcoa’s Vice President of Operations and
President Alcoa Australia. “Portland Aluminium has long enjoyed the
support of the local community and with this project we are pleased
to be able to create further positive social impact through
additional employment and local expenditure.”
The project is expected to create approximately 30 permanent
roles at the smelter and about 50 temporary construction positions.
The smelter currently has a workforce of about 680, consisting of
both direct employees and contractors.
Energy to operate the restored capacity will be supplied under a
new four-year agreement with power generator AGL. It will
supplement the earlier announced five-year energy agreements with
AGL, Alinta Energy and Origin that commenced on August 1, 2021.
The restart’s total cost is anticipated to be approximately $28
million of which Alcoa Corporation’s share is approximately $9
million. Restart expenses are expected to be incurred between the
fourth quarter of 2021 and the third quarter of 2022.
Alcoa Corporation also recently announced the restart of its
268,000 mtpy of smelting capacity at the Alumar smelter in Brazil,
which is expected to be operational by the fourth quarter of 2022.
When both projects are complete, Alcoa Corporation will have
approximately 82 percent of its 2.99 million metric tons of global
aluminum smelting capacity operating.
Portland Aluminium is an unincorporated joint venture included
Alcoa of Australia Limited (55 percent), CITIC Nominees Pty Ltd
(22.5 percent), and Marubeni Aluminium Australia Pty Ltd (22.5
percent). Alcoa of Australia Limited is owned by Alcoa Corporation
(60 percent) and Alumina Limited (40 percent).
About Alcoa Corporation
Alcoa (NYSE: AA) is a global industry leader in bauxite,
alumina, and aluminum products, and is built on a foundation of
strong values and operating excellence dating back 135 years to the
world-changing discovery that made aluminum an affordable and vital
part of modern life. Since developing the aluminum industry, and
throughout our history, our talented Alcoans have followed on with
breakthrough innovations and best practices that have led to
efficiency, safety, sustainability, and stronger communities
wherever we operate.
About Alcoa of Australia
Alcoa of Australia is owned by Alcoa World Alumina and Chemicals
(AWAC), an unincorporated global joint venture between Alcoa
Corporation and Alumina Limited that consists of a number of
affiliated entities that own, operate or have an interest in
bauxite mines and alumina refineries, as well as an aluminum
smelter, in seven countries. Alcoa Corporation owns 60 percent of
AWAC with Alumina Limited owning 40 percent.
Dissemination of Company Information
Alcoa intends to make future announcements regarding company
developments and financial performance through its website,
www.alcoa.com, as well as through press releases, filings with the
Securities and Exchange Commission, conference calls, and
webcasts.
Forward-Looking Statements
This press release contains statements that relate to future
events and expectations and as such constitute forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements include those
containing such words as “anticipates,” “endeavors,” “working,”
“potential,” “ambition,” “develop,” “reach,” “believes,” “could,”
“estimates,” “expects,” “forecasts,” “goal,” “intends,” “may,”
“outlook,” “plans,” “projects,” “seeks,” “sees,” “should,”
“targets,” “will,” “would,” or other words of similar meaning. All
statements by Alcoa Corporation that reflect expectations,
assumptions or projections about the future, other than statements
of historical fact, are forward-looking statements. Forward-looking
statements are not guarantees of future performance and are subject
to known and unknown risks, uncertainties, and changes in
circumstances that are difficult to predict. Although Alcoa
Corporation believes that the expectations reflected in any
forward-looking statements are based on reasonable assumptions, it
can give no assurance that these expectations will be attained and
it is possible that actual results may differ materially from those
indicated by these forward-looking statements due to a variety of
risks and uncertainties. Additional information concerning factors
that could cause actual results to differ materially from those
projected in the forward-looking statements is contained in Alcoa
Corporation’s filings with the Securities and Exchange Commission.
Alcoa Corporation disclaims any obligation to update publicly any
forward-looking statements, whether in response to new information,
future events or otherwise, except as required by applicable
law.
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version on businesswire.com: https://www.businesswire.com/news/home/20211107005123/en/
Investor Contact James Dwyer 412-992-5450 James.Dwyer@alcoa.com
Media Contacts Jim Beck 412-315-2909 Jim.Beck@alcoa.com Jodie Read
Alcoa of Australia 0404-800-335 Jodie.Read@alcoa.com
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