We mentioned the Alcoa smelter at Portland Australia smelter might receive a big amount of subsidies with $240 million from the Australia Government last week. As part of $240 millions, the Federal Government had announced they will provide $30 million to Alcoa as a secure package for Portland.
A week later, on January 20th, Alcoa announced its Portland smelter will restart and they have received a four year deal with energy provider AGL to secure steady power supply. The new four years power supply contract with AGL will start in August, 2017 once the current power contract expires. Although Alcoa did not release the details of the contract, the Portland will be safe for another 4 years.
Before the power failure, Portland smelter was running at 85% of is nameplate capacity with 358Kt. They only ran 30% after the power outrage. They plan to run the capacity prior to the outrage and it will take them six months to restore the production.
When Portland face the close risks after the power outrage, the local government tried to save the Portland smelter because it is so important to the local community. At least 2000 direct and indirect jobs have been saved when Alcoa announced the restart plan.
The announcement of the deal to save the smelter comes just as the USA launched an attack on China’s aluminum industry, accusing the Chinese government of giving subsidies.
No comments
Be the first to leave a comment.