Australia comes in aid of Alcoa’s Portland aluminium smelter

<p>The Australian Ministry has said on Monday January 9 that the government offered "substantial" financial support to Alcoa&rsquo;s aluminium smelter in Victoria. The aluminium smelter in Victoria was damaged by state-wide power outrage in December that caused molten aluminium to solidify.</p> <p>As a result of the blackout, the production was interrupted in the potline at the 300,000-tonnes-per-year Portland smelter; questions have been raised over smelter&rsquo;s long term future availability.</p> <p><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/portland%20AlcoaPlant.jpg" alt="News" width="517" height="226" /></p> <p>A negotiations between Australia&rsquo;s leading energy companies AGL Energy and Alcoa shows that the aluminium smelter may start its full production operations in the future.</p> <p>According to Philip Dalidakis, state minister, "The state's substantial support is aimed at keeping the smelter open and sustainable into the future."</p> <p>A spokesperson for federal minister Greg Hunt explained that the government not only offered financial help to the smelter but also there is potential for additional financial support from Australia's Clean Energy Finance Corporation, a state owned bank that finances in renewable energy.</p> <p>{googleAdsense}</p> <p>Both the Ministers refused to mention any specific figures as the negotiation was private. Australia's Fairfax Media stated that Alcoa received an offer of $240 million ($175.63 million), a $200 million in state funds and a $40 million interest-free loan from Canberra over four years. Government&rsquo;s financial support causes pressure on AGL Energy to offer cheaper power to the plant.</p> <p>Western Victoria&rsquo;s state MP James Purcell said that an announcement could be made on Friday if the deal is finalized between AGL and Alcoa.</p> <p>Portland MP Dan Tehan commented: &ldquo;Everyone is working to ensure that the smelter remains open.&rdquo; &ldquo;In my view, such an event warrants the government looking at ways it can assist the smelter to get back on its feet and continue operations.&rdquo;</p>