ALUMINIUM INDUSTRY AND TRADE – AUSTRALIA

ALP subsidy too late to save 1200 smelter jobs

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Original article by Perry Williams, Jack Quail, Lachlan Leeming
The Australian – Page: 1 & 2 : 29-Oct-25

Tomago Aluminium’s CEO Jerome Dozol says the fate of its NSW smelter is likely to be decided long before the federal government’s $2bn green production credit scheme becomes available. The smelter’s current electricity supply deal will expire in 2028, and it faces the prospect of negotiating a new coal-fired supply deal at much higher prices until it has access to sufficient renewable generation. Dozol says this is unlikely to occur until "well into the 2030s". The Energy Users Association of Australia says the shutdown of the Tomago smelter due to high electricity prices is an "unimaginable situation", given the nation’s abundant energy resources. Tomago’s closure would result in the loss of about 1,200 direct jobs.

CORPORATES
TOMAGO ALUMINIUM COMPANY PTY LTD, ENERGY USERS ASSOCIATION OF AUSTRALIA

Rio: D-day looms for Tassie smelter

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Original article by Peter Ker
The Australian Financial Review – Page: 15 : 29-Apr-25

The future of Rio Tinto’s aluminium smelter in Tasmania is under renewed scrutiny, with the plant’s electricity supply deal set to expire at the end of 2025. Rio Tinto has warned that the Bell Bay smelter could potentially be closed if the company fails to negotiate a new supply deal with the state-owned Hydro Tasmania; the smelter directly employs about 500 people. The future of Rio Tinto’s Tomago aluminium smelter in NSW is also uncertain, with its power supply deal scheduled to expire in 2028.

CORPORATES
RIO TINTO LIMITED – ASX RIO, HYDRO TASMANIA

Don’t politicise Kwinana closure: Alcoa

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Original article by Tom Rabe
The Australian Financial Review – Page: 8 : 17-Jan-24

Alcoa’s executive vice president Matt Reed has responded to criticism of the US-based company’s recent decision to close its Kwinana alumina refinery in Western Australia. Reed has cautioned against ‘politicising’ the decision, which will result in the loss of at least 750 jobs; he contends that federal and state government policies were not to blame for the plant’s closure, arguing that the decision was made due to "commercial realities". The cost of producing alumina at the 60-year-old Kwinana plant was about $410 per tonne in 2023, compared with around $250 per tonne at Alcoa’s two other refineries in WA.

CORPORATES
ALCOA INCORPORATED

Refinery closure to wipe out 1000 jobs

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Original article by Paul Garvey
The Australian – Page: 2 : 10-Jan-24

US-based Alcoa has confirmed that its Kwinana alumina refinery in Western Australia will be closed. Its workforce will be reduced to about 50 by the September 2025 quarter, compared with about 800 employees and 300 contractors at present. WA’s state development minister David Honey says the plant’s closure is unnecessary; he contends that the state government’s failure to issue Alcoa with new bauxite mining approvals and the federal government’s emissions reduction target are to blame. However, federal Resources Minister Madeleine King attributes the closure to factors beyond the government’s control, such as the plant’s age and declining bauxite grades at Alcoa’s mine.

CORPORATES
ALCOA INCORPORATED, AUSTRALIA. DEPT OF INDUSTRY, SCIENCE AND RESOURCES

Rio Tinto boosts its shipments

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Original article by Glen Norris
The Australian – Page: 16 : 18-Oct-23

Rio Tinto has advised that its Pilbara iron ore shipments for the September quarter totalled 83.9 million tonnes, which is one per cent higher year-on-year. However, iron ore production was down one per cent at 83.5 million tonnes. Rio Tinto expects its iron ore shipments for calendar 2023 to be at the upper end of its initial full-year guidance of 320 to 335 million tonnes. Meanwhile, Rio Tinto’s aluminium and bauxite production rose by nine per cent and two per cent respectively year-on-year.

CORPORATES
RIO TINTO LIMITED – ASX RIO

Smelter offered millions to stay put

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Original article by Nick Evans
The Australian – Page: 2 : 14-Dec-20

Alcoa’s aluminium smelter at Portland in Victoria will receive $76.8m from the Australian Energy Market Operator for load-shedding during periods of peak demand for electricity. The payments from AEMO’s Reliability & Emergency Reserve Trade scheme will be guaranteed by the federal government. Energy Minister Angus Taylor stresses that the payments do not constitute a subsidy; instead, they will compensate Alcoa for its role in stabilising the electricity grid. The deal will in itself not ensure the future of the smelter, which remains under pressure due to high energy costs.

CORPORATES
ALCOA INCORPORATED, ALCOA OF AUSTRALIA LIMITED, AUSTRALIAN ENERGY MARKET OPERATOR LIMITED, AUSTRALIA. DEPT OF INDUSTRY, SCIENCE, ENERGY AND RESOURCES

Alcoa smelter’s future in the balance

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Original article by Matt Johnston
Herald Sun – Page: 5 : 30-Oct-20

The Australia Institute has released a report which warns that the closure of Alcoa’s Portland aluminium smelter would reduce GDP by $800m and result in the loss of 3,600 jobs. The report was commissioned by Ben Davis of the Australian Workers’ Union, who says the economic impact of the smelter’s closure would be "unprecedented". He adds that the smelter helps to stabilise the electricity grid during periods of peak usage during summer. Both the Victorian and federal government are holding talks with Alcoa about the plant’s future.

CORPORATES
ALCOA INCORPORATED, ALCOA OF AUSTRALIA LIMITED, THE AUSTRALIA INSTITUTE LIMITED, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES

Energy key to recovery, says Rio

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Original article by Nick Evans
The Australian – Page: 13 & 16 : 8-May-20

Rio Tinto CEO Jean-Sebastien Jacques has told the resources group’s Australian annual meeting that its local aluminium assets are "very well run" and high power costs is their main problem. He emphasised the need for a "viable and sustainable solution" to this problem; he added that high energy prices will also be a key issue for the federal government in restarting the domestic economy in the wake of the coronavirus pandemic. Jacques also said it now appears to be ‘business as usual’ in China, which is Australia’s key iron ore export market.

CORPORATES
RIO TINTO LIMITED – ASX RIO, PACIFIC ALUMINIUM PTY LTD

Portland smelter survives cuts but future uncertain

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Original article by Nick Evans
The Australian – Page: 15 : 24-Apr-20

Alcoa announced a review of its loss-making aluminium smelters in September, with its Portland smelter in Victoria one of the smelters under scrutiny. Alcoa advised on 22 April that it would be closing its Intalco smelter in the US, as well as indicating it will speed up its review of loss-making assets because of the economic downturn resulting from the COVID-19 pandemic. Alcoa CFO Bill Oplinger said the pandemic was making it harder for the company to sell its unwanted assets, reducing the prospect of finding a ‘white knight’ for Portland should Alcoa’s review of it be unfavourable.

CORPORATES
ALCOA INCORPORATED, ALUMINA LIMITED – ASX AWC

ATO probes Rio on its pricing of aluminium

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Original article by Peter Ker
The Australian Financial Review – Page: 13 : 25-Feb-20

Rio Tinto’s Australian aluminium business is the subject of a transfer pricing assessment by the Australian Taxation Office. It is understood that the ATO’s investigation is looking at Rio’s Boyne aluminium smelter in Queensland, and the manner in which transactions between Boyne and Rio’s Singapore marketing hub have been structured in recent years. The ATO’s investigation comes at a time when Rio is holding discussions with governments concerning a possible rescue package for its loss-making Australian aluminium smelters. The ATO also launched a $212 million transfer pricing claim against Alcoa in December.

CORPORATES
RIO TINTO LIMITED – ASX RIO, AUSTRALIAN TAXATION OFFICE, ALCOA OF AUSTRALIA LIMITED