Alumina faces losses for the closing of Point Henry Smelter

The Australian-based Alumina faced huge losses in the first half of the year till June as compared to last year. This was primarily due to the closure of the Point Henry Smelter located in the state of Victoria fuelled by the continuing weakness in alumina prices.

The company incurred a net loss of $ 47.4 million, a huge leap from the $2.4 million in the first half of last year. This resulted in the company’s inability to pay interim dividend.

Alcoa Inc.’s Alcoa World Alumina and Chemicals is the prime support for Alumina where its 40% stakes are invested. Alcoa Inc. is the largest producer of alumina powder in the world. They decided to close their Point Henry smelter as it was no longer financially fruitful. After 51 years in service, the smelter closed this month.

Although Alumina is now focusing on paying back debts and strengthening the margins, they say they are not as badly affected as expected. With gearing of just 4.3% the company‘s balance sheet is quite strong and they are not likely to lose a footing in the industry.