https://www.engineeringnews.co.za
Aluminium|Business|Energy|Financial|Power|Refinery|Solutions|Operations
Aluminium|Business|Energy|Financial|Power|Refinery|Solutions|Operations
aluminium|business|energy|financial|power|refinery|solutions|operations

Economics for Spain refinery and smelter continue to worsen, says Alcoa

12th December 2023

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

Font size: - +

US-based Alcoa will be meeting with representatives of the national and regional authorities in Spain this week to discuss financial losses at the San Ciprian complex, which consists of an alumina refinery and an aluminium smelter.

Alcoa curtailed operations at the smelter in January last year, and operated the refinery at 50% capacity since the third quarter of 2022 to mitigate losses.

“The economics for both the smelter and the refinery have continued to worsen,” Alcoa said in a statement on Monday.

Since the smelter’s curtailment, the long-term cost for energy remains uncompetitive while the permitting and development of alternative energy supplies, supported by Alcoa’s signed power purchase agreements, have been delayed.

Further, the company has experienced market challenges that include the impact of the slowdown in Europe and lower sales prices.

Despite this, Alcoa said that it had continued to comply with the terms of the February 2023 viability agreement, under which it had agreed to a phased restart of the aluminium smelter in January 2024.

“We’ve been working to abide by all of the commitments contained in the Viability Agreement, including making capital investments, but the current situation remains severely challenged,” said Alcoa president and CEO William Oplinger.

“We are resolved to continue conversations with the government and workers’ representatives in a collaborative manner as we look to a long-term solution.”

When the original and amended viability agreements were signed, Alcoa had sufficient funding to honour all its commitments. However, based on current and foreseeable economic conditions, Alcoa would need to find solutions for the long term to deal with the unsustainable business conditions.

 

Edited by Creamer Media Reporter

Comments

Latest Multimedia

SEW-EURODRIVE at Nampo 2024
Updated 2 hours 53 minutes ago
Uniclox at Nampo 2024
Uniclox at Nampo 2024
Updated 2 hours 54 minutes ago

Showroom

SMS group
SMS group

At SMS group, we have made it our mission to create a carbon-neutral and sustainable metals industry.

VISIT SHOWROOM 
Rio-Carb
Rio-Carb

Our Easy Access Chute concept was developed to reduce the risks related to liner maintenance. Currently, replacing wear liners require that...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Dachser South Africa at Nampo 2024
Dachser South Africa at Nampo 2024
Updated 2 hours 58 minutes ago
AUTO-X at Nampo 2024
AUTO-X at Nampo 2024
Updated 3 hours ago
Astron Energy at Nampo 2024
Astron Energy at Nampo 2024
Updated 3 hours ago
Omnia at Nampo 2024
Omnia at Nampo 2024
Updated 3 hours ago

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.458 0.513s - 234pq - 2rq
Subscribe Now