Portland Aluminium Smelter in Victoria, Australia to Restart Capacity Lost After Power Outage
January 19 2017 - 5:04PM
Business Wire
Victorian and Australian Governments sign
agreements with Alcoa Alcoa and AGL decide on energy supply
The Victorian and Australian governments and Alcoa Corporation
(NYSE: AA) today announced the Portland Aluminium smelter will
restart capacity that had been lost due to a December power outage.
In addition, Alcoa and energy provider AGL reached an agreement
related to the electricity supply for the smelter.
The four-year agreements with the governments and AGL will
better position Portland Aluminium against market fluctuations and
help maintain more than 500 jobs at the smelter.
“The Victorian State and Australian Federal governments are
strong proponents of the Portland Aluminium smelter, our employees,
their families and the broader Portland community, and we thank
them for their unwavering support,” said Roy Harvey, Chief
Executive Officer of Alcoa. “Today’s government and energy
agreements will help make the Portland smelter more resilient
against market volatility, maintain hundreds of jobs and provide a
bridge to a potential long-term energy solution.”
Alcoa of Australia Chairman and Managing Director Michael Parker
added: “The recent displays of support have been outstanding, and
our sincere thanks go to everyone who has worked with us to make
these agreements possible. I acknowledge in particular the State of
Victoria for its determination and tireless support and the
Australian Federal government in helping us achieve this positive
outcome for the Portland community. To our employees, your hard
work to stabilise the plant and your flexibility in taking annual
leave after the outage is greatly appreciated. Our focus now will
be on restoring capacity quickly and safely.”
Alcoa will immediately begin work to restart smelting capacity
that was lost due to the fault on the Victorian transmission
network in December, which caused a five-hour power outage at the
smelter. Restoring the curtailed production is expected to take
approximately six months. Prior to the electrical fault, the
smelter had been operating at nearly 85 percent of its nameplate
capacity of 385,000 metric tons per year.
Terms of the electricity agreement with AGL were not
disclosed.
As previously announced, the power outage at Portland Aluminium
smelter is not expected to have a significant, unfavorable impact
on fourth quarter results.
Portland Aluminium is an unincorporated joint venture between
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 60 percent by Alcoa
Corporation and 40 percent by Alumina Limited.
On November 1, Alcoa Corporation announced it had completed the
separation from its parent company Alcoa Inc. (now named Arconic
Inc.) and began operating as an independent, publicly-traded
company.
About Alcoa Corporation
Alcoa (NYSE: AA) is a global industry leader in bauxite, alumina
and aluminum products, with a strong portfolio of value-added cast
and rolled products and substantial energy assets. Alcoa is built
on a foundation of strong values and operating excellence dating
back nearly 130 years to the world-changing discovery that made
aluminum an affordable and vital part of modern life. Since
inventing 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. Visit us online on
www.alcoa.com, follow @Alcoa on Twitter and on Facebook at
www.facebook.com/Alcoa.
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company developments and financial performance through its website
at www.alcoa.com.
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Alcoa CorporationInvestor Contact:James Dwyer,
212-518-5450James.Dwyer@alcoa.comorMedia Contacts:(US) Monica Orbe,
212-518-5455Monica.Orbe@alcoa.comor(AU) Brian Doy, +61 404 800
690Brian.Doy@alcoa.com.au
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