Alcoa Corporation, which makes bauxite, alumina and aluminum products, has terminated the electricity contract tied to Alcoa’s Rockdale mine in Texas, USA. The smelter at Rockdale has been fully curtailed since the end of 2008.
Alcoa says that the cost of power under the contract exceeded the related revenue.
As a result of the early termination, Alcoa has initiated a strategic review of the remaining buildings and equipment associated with the smelter, casthouse and the aluminum powder plant. A decision on those assets is expected by the end of 2017, the company said.
‘Reaching a resolution on the Rockdale power contract aligns with two of our strategic priorities – to reduce complexity and to drive returns,’ said William Oplinger, executive vice president and chief financial officer. ‘It eliminates a complex, long-term contract tied to the Rockdale location, and positions Alcoa for improved profitability and higher returns.’
This story is reprinted from material from Alcoa, with editorial changes made by Materials Today. The views expressed in this article do not necessarily represent those of Elsevier.
