ALUMINIUM INDUSTRY AND TRADE – AUSTRALIA

Alcoa owes $212m taxes, ATO claims

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Original article by Nick Evans
The Australian – Page: 19 : 24-Feb-20

Alcoa has stated in its latest financial report that its Australian unit has been served with a $212 million tax bill by the Australian Taxation Office. Alcoa has stated that the ATO is of the view that Alcoa of Australia has underpaid tax on the sale of alumina, which it produces in Western Australia. A spokeswoman for Alcoa of Australia has stated that it disputes the ATO’s claim, and it plans to make use of the statutory rights available to it to challenge the ATO’s position.

CORPORATES
ALCOA INCORPORATED, ALCOA OF AUSTRALIA LIMITED, AUSTRALIAN TAXATION OFFICE

Rio cool on Albanese solar smelter talk

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Original article by Brad Thompson
The Australian Financial Review – Page: 21 : 16-Dec-19

Rio Tinto has indicated that it is considering all options to ensure the viability of its aluminium smelters in Australia and New Zealand, amid growing concern that they may be closed. However, the resources giant has downplayed suggestions that it may seek to switch the carbon-intensive smelters from coal to solar energy. Labor leader Anthony Albanese recently visited the Boyne smelter in Queensland, and said he had been told that Rio was looking at transitioning the plant to renewables.

CORPORATES
RIO TINTO LIMITED – ASX RIO, AUSTRALIAN LABOR PARTY

High energy prices force Rio to the table

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Original article by Perry Williams
The Australian – Page: 17 & 20 : 26-Nov-19

The future of Rio Tinto’s Tomago, Boyne and Bell Bay aluminium smelters in Australia remains under scrutiny amid high energy prices and weak demand for aluminium. CEO Jean-Sebastien Jacques notes that energy costs accounts for a third of the company’s cost structure, adding that energy costs in Australia are very high by global standards. He says Rio Tinto is holding talks with governments at federal and state level regarding energy costs. The future of Alcoa’s Portland smelter in Victoria is also uncertain, with a state government subsidy due to expire in 2021.

CORPORATES
RIO TINTO LIMITED – ASX RIO, ALCOA OF AUSTRALIA LIMITED, CSR LIMITED – ASX CSR, RUSAL

Rio calm as Russia sanctions hit plant

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Original article by Paul Garvey
The Australian – Page: 17 & 20 : 16-Apr-18

Rio Tinto has advised that its Queensland Alumina Limited business is unlikely to be significantly affected by a move by the US to impose trade sanctions on Russian companies. However, Rio Tinto has responded to the trade sanctions by declaring force majeure with regard to some QAL contracts. Russian companies that are affected by the sanctions include Rusal, which has a 20 per cent stake in QAL. Rio Tinto also has offtake agreements with Rusal regarding the former’s alumina smelters in France and Iceland, while Rusal also sources bauxite from Rio Tinto for its smelter in Ireland.

CORPORATES
RIO TINTO LIMITED – ASX RIO, QUEENSLAND ALUMINA LIMITED, RUSAL, GLENCORE PLC, LONDON METAL EXCHANGE LIMITED, UNITED STATES. DEPT OF THE TREASURY, UNITED STATES. DEPT OF STATE

Threat to strike as union job axed

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Original article by Ewin Hannan
The Australian – Page: 4 : 29-Mar-18

Alcoa and the Australian Workers’ Union are negotiating a new enterprise agreement for workers at the Portland aluminium smelter in Victoria. However, the AWU is resisting Alcoa’s push to abolish the full-time position of union convener, which boasts an annual salary of $A123,000. The convener solely undertakes union-related duties at the smelter, and Alcoa contends that the position is not necessary given that the AWU already has a full-time organiser at the site. The AWU has warned of the potential for strike action over the issue.

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

Fears a Trump tariff will spike dumping

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Original article by Andrew Tillett
The Australian Financial Review – Page: 4 : 11-Jul-17

Australian Steel Institute CEO Tony Dixon has welcomed reports that Australian steel and aluminium will be exempt from proposed new US import tariffs. However, Dixon has raised concerns that Australia could face an influx of low-cost imported steel from countries that are barred from the US market under the new tariffs regime. The Opposition has also stressed the need to protect local industries and jobs by ensuring that anti-dumping laws are enforced.

CORPORATES
AUSTRALIAN STEEL INSTITUTE LIMITED, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF FINANCE, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, BLUESCOPE STEEL LIMITED – ASX BSL

Rio’s Boyne smelter to slash output, jobs

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Original article by Matt Chambers
The Australian – Page: 17 & 22 : 20-Jan-17

The rising spot price of electricity in Queensland has prompted the Rio Tinto-controlled Boyne aluminium smelter to reduce annual production by around 45,000 tonnes. While the bulk of its electricity is supplied by the Rio Tinto-backed Gladstone Power Station, some 15 per cent is sourced via the spot market, where the price recently spiked to more than $A12,000 per megawatt hour. Some jobs will also be lost at the Boyne smelter, which has a workforce of about 1,000.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BOYNE SMELTERS LIMITED, GLADSTONE POWER STATION, STANWELL CORPORATION LIMITED, AUSTRALIAN ENERGY REGULATOR, ALCOA INCORPORATED, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, VICTORIA. DEPT OF PREMIER AND CABINET

Smelter’s future hanging on power supply deal

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Original article by Pia Akerman, Tessa Akerman
The Australian – Page: 2 : 22-Dec-16

The Federal and Victorian environment ministers, Greg Hunt and Wade Noonan, have held talks with Alcoa CEO Roy Harvey in New York. Harvey declined to make a commitment regarding the future of the Portland aluminium smelter, despite being offered some $A230m worth of federal and state financial assistance to keep the plant open. He said the smelter’s fate depends on the outcome of negotiations with AGL Energy regarding a new power supply agreement.

CORPORATES
ALCOA INCORPORATED, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, VICTORIA. DEPT OF ECONOMIC DEVELOPMENT, JOBS, TRANSPORT AND RESOURCES, AGL ENERGY LIMITED – ASX AGL, AUSTRALIA. CLEAN ENERGY FINANCE CORPORATION, AUSTRALIAN GREENS, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES, KEPPEL PRINCE ENGINEERING PTY LTD

‘Outbreak of commonsense’ may save smelter

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Original article by Chip Le Grand
The Australian – Page: 1 : 23-Oct-14

Aluminium producer Alcoa in early 2014 announced the closure of the Point Henry smelter operation in Geelong. This sparked concerns that its other facility, at Portland, would also be shut once an electricity supply deal ends in November 2016. However plant manager Peter Chellis has now welcomed an announcement by Federal Industry Minister Ian Macfarlane that he wants to exempt the smelter from the renewable energy target. This is estimated to bring annual cost savings of about $A10m, and may help secure the jobs of 540 staff and 180 contractors

CORPORATES
ALCOA INCORPORATED – ASX AAI, AUSTRALIA. DEPT OF INDUSTRY, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES, AUSTRALIAN LABOR PARTY, AUSTRALIAN ALUMINIUM COUNCIL LIMITED

Aluminium could win RET exemption

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Original article by Phillip Coorey
The Australian Financial Review – Page: 7 : 18-Sep-14

There is some support for exempting the aluminium industry from the Renewable Energy Target (RET). Australian Labor Party Leader Bill Shorten is sympathetic to the unique position of the industry. Miles George, the CEO of renewable energy company Infigen Energy, conceded that the aluminium industry is a special case. However, all parties have warned that undermining the RET would threaten investment and jobs in the renewable energy sector

CORPORATES
INFIGEN ENERGY LIMITED – ASX IFN, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF INDUSTRY, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES, IFM INVESTORS PTY LTD