Bell Bay Aluminium (BBA), Australia's oldest aluminium smelter, is reviewing its workforce and offering redundancies for a small number of positions, just over a month after receiving an AUD 200 million (USD 137.52 million) government support package aimed at securing the facility's future until at least 2031. Up to 10 roles are understood to have been affected by the review, although the smelter is expected to retain its existing workforce of approximately 550 full-time equivalent (FTE) employees. Some redeployment opportunities will also be available, while the positions identified are not understood to involve frontline services. The changes reportedly include some former participants in Bell Bay Aluminium's graduate programme. Rio Tinto, which operates the smelter near George Town in...
South32 expects the sale of its aluminium value chain assets to Alcoa to be completed in the six months ending June 2027. The proposed transaction covers its aluminium operations and related bauxite and alumina assets in South Africa, Australia and Brazil. The sale follows a binding conditional agreement signed by the two companies, under which Alcoa agreed to acquire the assets for up to USD 5.6 billion . The assets include South32's Hillside Aluminium smelter and the idled Bayside smelter in South Africa, its interests in the Boddington bauxite mine and Worsley alumina refinery in Australia, and the Mineração Rio do Norte bauxite mine and Alumar alumina refinery and aluminium smelter in Brazil. Explore the production, demand and consumption forecasts of bauxite and alumina in our...
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The People’s Republic of China has agreed to end export subsidies that have helped to drown the aluminium market (among others) in an oversupply of the metal. United States Trade Representative Michael Froman made the announcement regarding an agreement ending the subsidies in question last week Wednesday. “Today we have signed an agreement with China to eliminate export subsidies that the United States challenged because they are prohibited under WTO rules,” said U.S. Trade Representative Michael Froman. “This is a win for Americans employed in seven diverse sectors that run the gamut from agriculture to textiles to medical products, who will benefit from a more level playing field on which to compete. This agreement once again underscores that President Obama’s commitment to enforce our...
Diversified metals and mining major Vedanta Resources has initiated the ramp up of its second aluminium smelter at Jharsuguda. Vedanta aims to commission two potlines of the smelter to reach a capacity of 0.6 million tonne per annum (mtpa) by the end of this financial year. The second smelter with a rated capacity of 1.25 mtpa is located within the product specific SEZ (Special Economic Zone) developed by Vedanta close to the site of its standalone smelter. "The second smelter at Jharsuguda has been lying idle for three years mainly due to want of power. Now that we have got a favourable order from the state power regulator to use two units (600 Mw each) from our own power plant (of 2400 Mw capacity), we are in a position to expand capacity of this smelter. We have also decided to raise...
Base metals are expected to fall today, dragged down by crude oil prices. No agreement was reached at the Doha meeting on crude oil freeze plan. The next meeting on oil issue will be held in June. Crude oil prices plunged 6 per cent after opening during Asian trading hours, and are expected to fall initially before rising this week, weigh down base metals. This will weigh ME aluminium down to USD 1,530-1,550/mt on Monday. SHFE 1606 aluminium is expected to drop to RMB 11,840-11,950/mt. In China’s spot aluminium market, spot discounts of RMB 0-30/mt and spot premiums of RMB 0-10/mt are expected over SHFE 1605 aluminium contract.
Saudi Arabia Mining Company (Ma'aden) announced Sunday the interim financial results for the quarter ended on March 31 (three months). Financial highlights of the quarter vs same quarter last year Revenue declined by 17 per cent due to lower commodity prices for all products and decrease in aluminium sales volume. The average realized prices DAP and ammonia declined by approximately 30 per cent, whereas aluminium prices (including premium) declined by around 25 per cent compared to the same quarter of last year. The impact of profitability from the decline of revenues was partly offset by 16 per cent reduction in cost of sales through lower raw material costs and the effects of the company's ongoing initiative to reduce operating costs. This initiative led to a reduction in exploration...
Aluminium Bahrain B.S.C. (Alba), the Bahrain-based leading international aluminium smelter, is pleased to announce International Bechtel Co. Ltd. (Bechtel) as the Engineering, Procurement, and Construction Management (EPCM) contractor for its landmark Line 6 Expansion Project. Under the terms of the contract, Bechtel will be responsible to design and construct the sixth potline as well as support industrial services. Alba will be the world’s largest single-site aluminium smelter upon completion of the Line 6 Expansion Project, which will boost its production by 540,000 metric tonnes per annum (mtpa) bringing Alba’s total production capacity to 1,500,000 mtpa. Line 6 will have 424 pots that will use the proprietary EGA DX+ Ultra technology thus significantly increasing operating...
Tasmania's biggest electricity user, Bell Bay Aluminium, is preparing for more power rationing, if the state's energy crisis worsens. Bell Bay Aluminium has already cut production by 10 per cent for five months to save electricity as the state grapples with record low Hydro Tasmania dams and the extended outage of Basslink's undersea power cable to Victoria. A Labor and Greens dominated Senate committee examining the energy crisis is holding its first hearings in Hobart. Bell Bay's general manager Ray Mostogl told the inquiry the company was preparing for further power rationing at its smelter if the crisis drags on. "We've made contingency plans on site to work out if we have to shed more load how would we do it," he said. "They're more longer type decisions, so we've been busy doing...
China Aluminum International Trading Co. (Chalco Trading) hiked aluminium prices in major markets in the week ending April 15, it said on its WeChat. For details, please see the table below: Chalco Trading is the wholly-owned subsidiary under Chalco responsible for alumina and aluminium sales.
Alcoa has agreed to a new power deal for its 279 000 t/y Intalco aluminium smelter in Washington state, according to a statement from its power supplier, staving off the closure of one of the last remaining US aluminium plants. Both sides struck a deal starting on July 1 that would keep 2.5 potlines open at the plant, according to a posting on the Bonneville Power Authority (BPA) website. The plant was slated to close by the end of June. Alcoa shuttered its 269 000 t/y Warrick smelter at the end of March, bringing US aluminium output to its lowest in more than 65 years as the industry struggles with low metal prices amid rising tensions with China. Terms of the deal were not disclosed, but the BPA is seeking comment on the agreement by April 22.
Aditya Birla Group firm Hindalco has initiated talks with banks to refinance loans worth $5.3 billion taken by its subsidiary Novelis. According to bankers, the loans are being refinanced with longer-term loans and at lower costs to cut the finance costs of the company and increase its repayment schedule. Hindalco had acquired Novelis in 2007 in an all-cash deal at an enterprise valuation of $6 billion. But, the commodity cycle turned against the company as low demand and high finance costs ate into its profits. Bankers said one of Novelis loans worth $3.5 billion is due early next year and the company has initiated talks to refinance this loan and the interest rates would be close to 25 basis points than the previous loan, said a banker. This will be one of the largest refinancing of...
Non-ferrous metals including aluminium, zinc, and copper gained on Wednesday, April 13, after Chinese trade data brightened the outlook for demand in the world's biggest metals consumer, prompting some investors to shift back to commodities. Price gains in aluminium and industrial metals had a snowball effect as they pushed through key levels, sparking more buying by speculators based on technical signals, traders said. The initial catalyst was data showing that China's exports in March returned to growth for the first time in nine months, adding to further signs of stabilisation in the world's second-largest economy that cheered regional investors. "The trade numbers are very, very strong. On the ground, the fundamentals appear to be consolidating. On the demand side, the property market...
Aluminium prices rose for a while in the March quarter but gave up most of those gains towards the end of the quarter. Here comes more gloomy news. Aluminium producer Alcoa Inc. said global demand for aluminium will grow by 5 per cent this year, instead of the 6 per cent it had forecast in January. The main culprit is China—accounting for 52 per cent of global aluminium consumption—whose demand is set to grow by 6.5 per cent compared with the 8 per cent earlier. Ex-China demand too is expected to grow by 3 per cent compared with 4 per cent earlier. These estimates may change in future but the direction indicates lower growth. The aerospace and the heavy-duty truck/trailer segment (in the US) are the main sectors where demand is lower. If companies cut supply too, then the balance can be...
Aluminium is likely to get costlier in the coming days due to the expected freeze on oil output to be clamped by the Organization of Petroleum Exporting Countries at its meeting with non-OPEC members on April 17. The output freeze will spur price increase because energy accounts for about 30 per cent of aluminium's production cost. Aluminium has been trading above INR 97-98 levels in Indian market over the past few weeks as oil prices have been inching higher. A rally in oil prices is likely to push the cost of production higher for aluminium prices. "However, the sustainability of oil prices above $42-43 a barrel is still doubtful," said Himanshu Gupta, senior market strategist at Karvy Commodities Broking. "Aluminium prices are expected to test INR 110-111 per kg in the medium term...
A long-awaited recommendation on how the cost of the national electricity grid in New Zealand should be shared in future is due on May 17. The NZ Electricity Authority says it will release its transmission pricing methodology paper and run an eight-week consultation. The issue has been running for years without resolution and revolves around whether South Island electricity generators and consumers pay too much for access to the grid, especially since $2 billion of upgrades over the past five years has delivered a significant improvement in security of supply for North Island consumers. Whatever the outcome, there are likely to be economic and political consequences. The Rio Tinto-controlled aluminium smelter at Tiwai Point regards the final decision on grid costs as an important input...
The state-owned aluminium maker Nalco is considering setting up a 5-lakh tonne per annum aluminium plant in Iran through a joint venture (JV). Nalco CMD T K Chand, who was part of the delegation led by Petroleum Minister Dharmendra Pradhan to the Islamic country, met a top Iranian official yesterday and discussed the feasibility of setting up such a plant in the Chabahar Free Trade Zone (FTZ), a senior official said. "Chand met Iran's Mines and Mining Industries Development and Renovation Organisation head Mehdi Karbasian in Tehran over the proposed JV for setting up the plant, which includes a smelter and a gas-based power plant," he added. The discussions also touched on Nalco's interest to further expand its presence in Iran through more co-operation in bauxite mining and aluminum...
Reports that a company with no connection to the aluminium industry is interested in acquiring the Rio Tinto aluminium smelter at Fort William have raised job fears. The smelter employs 150 people and Rio Tinto is currently carrying out “a strategic review” of all its assets in Lochaber. Highland Council has stressed the company’s importance as a major employer in the local economy, pointing out that it is seven times as significant to Lochaber as the Tata Steel works is to Lanarkshire. Scottish Labour’s deputy leader, Alex Rowley, joined party candidate for Skye, Lochaber and Badenoch, Linda Stewart, and Fort William and Ardnamurchan councillor, Brian Murphy, to meet union members on Saturday this week.
Aluminium prices in Indian market edged up by 40 paise to INR 101.30 per kg in futures trade today as participants enlarged positions, supported by a strong spot demand in the physical market. In futures trading at the Multi Commodity Exchange, aluminium for delivery in May inched up by 40 paise, or 0.40 per cent, to INR 101.30 per kg, in a business turnover of two lots. Likewise, the metal for delivery in current month traded higher by 30 paise, or 0.30 per cent, to INR 100 per kg in 187 lots. Traders said increased domestic demand from consuming industries at the spot markets, helped aluminium futures to trade higher.
Continuous price recovery has triggered restart of idled capacity and commissioning of new capacity in Chinese aluminium market. How much output will those capacities contribute in the first half of this year?- SMM doubts. SMM expects restarted capacity unlikely to exceed 300,000-tpy in the first half of this year, contributed mainly by smelters with power tariff subsidies and scale effect. These restarted capacities will contribute less than 50,000 tonnes to output in H1, though. High restart cost and tight bank lending will deter many smelters from following suit. Besides, rising coal and alumina prices will also act as constraints, SMM aluminium analyst Liu Xiaolei explained. As for new capacity, the figure is unlikely to surpass 500,000-tpy in Q2, with output contribution estimated at...
Vedanta Limited announced yesterday production results for the fourth quarter and full year ended 31 March 2016. In Q4 FY2016, aluminium production was 226 kt at Jharsuguda and Korba. Q4 FY2016 aluminium production highlights: On 27th January, the company received approval from the regulatory authorities (Orissa Electricity Regulatory Commission) to use the power generated from three units of the 2,400 MW (4 x 600 MW) Jharsuguda power plant for captive use which would enable full ramp-up of the 1.25 mtpa Jharsuguda-II smelter. Consequently, it has commenced ramp-up of the first pot line of 312.5kt from 1 April 2016. The 325 kt Korba-II smelter produced 19,200 tonnes during Q4 FY2016 with 84 pots operational. Pre-commissioning activities have commenced for further ramp up from the end of...
