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aluminium smelting industry
provided BHP with electricity at 22 cents per
kWh, compared with about 57 cents per kWh
for other industrial users and as much as R1.40
per kWh for general consumers.
Eskom’s average operating cost comes to
about 47 cents per kWh, indicating that other
South African electricity consumers have
been subsidising BHP’s power up to a value
of R3bn. BHP pointed out that the real price
for the electricity, which is linked to commodity
prices and currency fluctuations, would
only be truly known once the contracts had
run to their full terms. However, the contracts
contain two flaws: no price increases were
built into the contracts and the term of the
contract was set over multiple decades, without
any contractual flexibility should circumstances
change.
alcoa prepares modernisation
of massena smelter
Alcoa says that it is prepared to proceed with
the next phase of the modernisation of its
operations in Massena, New York, once the
company receives a Record of Decision (RoD)
on the Grasse River that is in line with the
Proposed Remedial Action plan issued by
the Environmental Protection Agency last
autumn. The next phase includes spending
USD52m for work that will begin in June
2013, including USD10m toward economic
development in the North Country. Modernising
Massena will contribute to moving farther
down the aluminium cost curve, says Alcoa.
Once an RoD is received, the next phase
of the modernisation will include site work
and support projects in preparation for the
construction of a new potline at the location’s
Massena East plant. Under the terms of the
contract, NYPA will supply power to the operations
in Massena over the next 30 years,
with the option to extend the contract for an
additional ten years under certain economic
conditions. In turn, Alcoa must invest a minimum
of USD600m to modernise its operations.
rusal and chalco to deepen
technological cooperation
UC Rusal and Aluminium Corporation of
China (Chalco) signed a Memorandum of
Understanding (MoU) detailing their intent to
cooperate in areas such as R&D of new technologies
in the aluminium industry, development
of bauxite resources and investments
in integrated hydro powered aluminium production.
This partnership is an answer to the current
situation with the overproduction in the aluminium
market. Through close cooperation
the companies intend to look for new technological
responses and replace outdated high
cost production facilities with new advanced
energy-efficient production capacity in Eastern
Siberia.
Chalco has a strong edge in R&D, engineering
and design, construction, operation
management, while Rusal has advantages in
aluminium industry technologies and hydro
power resources. Both parties will work closely
together on various levels in the aluminium
sector by complementing each other’s advantages.
The partnership is in line with the strategic
goal of the two countries to increase trading
volumes. With the support from both governments,
the two companies will use both countries’
competitive advantages to reduce energy
costs, further expand their markets, and
seek better investment opportunities and develop
quality projects in the global mining
industry.
south african eskom supplies
cheap energy to BHp smelters
Details of the electricity supply contracts between
BHP Billiton and South Africa’s power
utility Eskom became public in March, implying
a subsidy of about R3bn per year towards
BHP’s electricity prices. The National
Energy Regulator of South Africa will conduct
hearings to investigate the terms of the
contract and the implications for other power
users.
Newspaper Media24 reported that limited
details of the contract indicated that Eskom
chalco suffers big net loss in 2012
Aluminium Corp. of China Ltd posted a
worse-than-expected net loss of 8.2bn yuan
(USD1.3bn) for 2012, as it faced low aluminium
prices and rising costs. The loss was far
deeper than an average forecast for a 4.78bn
yuan net loss from 20 analysts polled by
Thomson Reuters, and compared with a net
profit of 237.97mn yuan a year ago.
■
on the move
Graham Davy, CEO of Sims Metal Management’s
European business and its global Sims
Recycling Solutions (SRS) division, is no longer
employed by the company.
Saeed Mohammed Ahmed Al Tayer was
named Dubal’s new deputy chairman, replacing
Ahmed Humaid Al Tayer.
Rio Tinto has appointed Chris Lynch chief
financial officer to succeed Guy Elliott, with
effect from 18 April 2013.
Ryan Cavanagh, general manager of New
Zealand Aluminium Smelter left the smelter
at the end of April to take up the position
of general manager at Pacific Aluminium’s
Gove bauxite mine and alumina refinery in
the Northern Territory, Australia. Stewart
Hamilton has taken over as interim general
manager.
Gerhard Anger (52) has been appointed
CEO of Alu Menziken AG, Switzerland. He
succeeds Roland Gloor who has held the post
since March 2008.
60 ALUMINIUM · 5/2013