Photo by: Bloomberg
PERTH (miningweekly.com) – Aluminium major Alumina has reported a net loss of $47.4-million during the first half of the year, as a result of the closing of its Point Henry smelter, in Victoria, in February this year.
This compared with the net loss of $2.4-million reported in the previous corresponding period.
Earlier this year, Alumina's joint venture (JV) partner in Alcoa World Alumina & Chemicals (AWAC), Alcoa, announced the permanent closure of the Point Henry smelter, after global economic conditions continued to deteriorate.
“Alumina’s net loss occurred due to significant charges incurred during the half, including costs associated with the closure of the Point Henry smelter. Excluding these charges, the company would have reported a net profit of $26.8-million,” Alumina CEO Peter Wasow said on Thursday.
He noted that the AWAC JV maintained cost control during the half year, and achieved ongoing net productivity gains against a backdrop of continued weakness in alumina pricing.
AWAC’s total revenue for the first half reached $2.7-billion, compared with the $2.9-billion reported in the first half of 2013, while the JV’s earnings before interest, tax, depreciation and amortisation reached $119.2-million, compared with the A$229.8-million reported in the previous corresponding period.
“AWAC’s strategic initiatives to improve margins are on track. The Ma’aden refinery is now approximately 95% complete and while the mine is around 70% complete, it has already begun operations, providing feed stock to the refinery,” said Wasow.
The first alumina from the refinery was due in the fourth quarter of this year.
The refinery, in Saudi Arabia, would produce some 1.8-million tonnes a year of smelter grade alumina, and the project would become the world’s largest fully-integrated aluminium complex.