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tributor) have referred their dispute (source:
Annual report 2012). This information leads
to the conclusion that the gas cogeneration
power plant, built within the production complex
of Aluminium S.A., has not contributed
to reducing electricity costs to an extent that
would be suitable and profitable for Aluminium
S.A.
This price per megawatt hour is lower
by about €20/MWh than the price that PPC
had been charging Aluminium S.A. following
a unilateral decision and despite the lack of
contract for the period of July 2010 up until
mid-May 2012 (date when the decision was
made by RAE, deciding on a temporary price).
The impact of CO 2 emissions charges implemented
in 2013 may additionally increase
electricity costs by €6/MWh unless the state
implements subsidises for energy intensive industries,
including Aluminium S.A.
Exemplary in safety
Aluminium S.A. has a long tradition in safety
performance since it was part of the Pechiney
group, and the management is very proud of
that. It is regarded as one of the safest aluminium
plants in the world for workers, with
only few accidents a year (and only one injury
at work in 2006) .
In December 2012 a new collective agreement
was made between the management of
Aluminium S.A. and the company’s labour
union. The agreement resulted in preserving
all employment positions and the production
capacity of the plant as well as significant cost
streamlining on a viable and long-term basis.
Technical features
Aluminium S.A. uses tried and tested Pechiney
technology, a point-feeder system, enclosed
pot cells and pre-baked anodes. Potlines A
and B (since 1986) operate at 70 kA (520 pots)
and potline C at 90 kA (since 1971, 260 pots).
Since 1995 the plant has been equipped with
central computer control and graphic tracking
of the production process in all potlines.
Current efficiency is 93% and electricity consumption
is 13,200 kWh/t. Consumption of
anodes is 405 kg/t Al , aluminium fluoride is 10
kg/t, alumina 1,900 kg/t, so the plant has the
lowest specific consumption of raw materials
and consumables compared to all other producers
in the region. Aluminium S.A. processes
around 1.4m tonnes of Greek bauxite
and 200,000 tonnes of imported (tropical)
bauxite; it produces around 800,000 tpy of
alumina (460,000 tpy for export) and 164,000
tpy of primary metal (around 90,000 tpy for
the Greek market). The anode plant has a production
capacity of 90,000 tpy of anodes.
Average pot life is 100 months (more than
eight years), which is one of the best results for
this type of cell and technology in the world.
The plant’s port is capable of accommodating
and serving ships of tonnages up to 50,000
tonnes. It is equipped with three electric rail
cranes, the alumina ship loader and all necessary
storage facilities for raw materials and
products. The loading installations for the alumina
cargo to be exported (bulk cargo) can
achieve loading rates exceeding 600 tph.
The smelter uses Tardis equipment for its
dross handling. Tardis is a fully patented process
of rapid cooling and pressing. The equipment,
which was awarded a Queen’s Award
for Enterprise in the Innovation category, has
been designed to maximise aluminium recovery
from dross, whilst eliminating the associated
dust and fume.
The new 334-MW high-efficiency combined
heat and power (CHP) plant, or cogeneration
plant, is located within the complex
of Aluminium S.A. It is connected to the regional
gas pipeline that comes from Russia
In July the EU Commission has referred Greece
to the European Court of Justice for failing to
comply with two distinct Commission decisions
that ordered Greece to recover incompatible
state aid from three Greek casinos and from Aluminium
of Greece S.A. (AoG). In both cases, over
two years after the Commission decisions, the
full aid amounts have still not been paid back.
The EU Commission requested Greece to
recover incompatible state aid in the form of
preferential electricity tariffs from AoG. The aid
amount is calculated as the difference between
PCC’s revenues from the standard tariff between
and across Bulgaria to Athens and the port of
Piraeus. The plant came into operation in 2008
and is equipped with the latest technology. It
operates using natural gas and, apart from
electricity, produces steam which is used in
the alumina production process. Any surplus
electricity produced is fed into the national
electricity grid.
Author
Goran Djukanovic is an independent aluminium
market analyst. He is located in Podgorica, Montenegro.
Email: gordju@t-com.me.
EU Commission refers Greece to court for failure
to recover incompatible aid from AoG
January 2007 and March 2008 and the revenues
from the tariff that was actually applied to AoG
in the same period. The Commission calculated
the aid principal as amounting to 17.4 million
euros.
The aid given to AoG has not been recovered
up to date. The recovery procedure has been
suspended by a national court, in clear violation
of EU law. AoG has appealed the Commission’s
2011 decisions before the EU General Court.
However, no interim measures have been requested
nor granted and the appeals have no
suspensive effect.
Source: Eurobank Equities Research
© Djukanovic
18 ALUMINIUM · 9/2013