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Power Prices in Australia Highest Globally - Alcoa

Metal News - Published on Thu, 16 Jan 2020

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Leading aluminium maker Alcoa said that Australia has one of the highest energy price markets on the planet and that it is talking with governments here about finding an electricity solution for its loss-making Portland smelter in Victoria. Alcoa president Mr Roy Harvey said that “Discussions are underway with governments about the period beyond 2021. 'The deal we agreed to was a four and half year deal, and that will go out to the middle of 2021, and so in between now and that particular moment in time we need to see if there is a repowering solution, or if there is another eventuality for that plant. So we are in the midst of discussions with government, it is a plant that operates very stably, it is a good technology, it just happens to be one of the most highest energy price markets on the planet.''

Mr Harvey indicated that Portland would continue producing aluminium until at least the end of the existing subsidy package.

The future of Portland, which is largely powered by brown coal, is in doubt on two fronts as Alcoa seeks to rid its portfolio of uncompetitive assets while simultaneously reducing the carbon intensity of its business. Portland was losing money in 2019 despite a AUD 200 million package of government subsidies that expire in mid 2021

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Posted By : Rabi Wangkhem on Thu, 16 Jan 2020
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