August 12, 2016

Alcoa moves to terminate power hedge


Alcoa of Australia Limited (Alcoa) and Eastern Aluminium (Portland) Pty Ltd (EAPL) have taken steps to terminate their respective Portland Aluminium smelter electricity hedge contracts with AGL Loy Yang, under the terms of those contracts. This action does not affect Alcoa's or EAPL’s ability to operate the smelter or secure electricity supply to the smelter, or their performance of the contracts.
 
Background
Alcoa and EAPL signed agreements with Loy Yang Power in March 2010 to hedge the spot price for electricity in the National Electricity Market for a specific load for some 20 years from 1 November 2016, following the expiry of the current contract with the State Electricity Commission of Victoria (SECV) on 31 October 2016.
 
Eastern Aluminium (Portland) Pty Ltd (EAPL) is a subsidiary of Alcoa of Australia Limited.
 
Portland Aluminium is owned:

  • 45% by Alcoa of Australia Limited;
  • 10% by Eastern Aluminium (Portland) Pty Ltd;
  • 22.5% CITIC Nominees Pty Limited; and
  • 22.5% Marubeni Aluminium Australia Pty Ltd.

Alcoa operates Portland Aluminium on behalf of the joint venture partners.
 
ENDS
 
Media contact: Brian Doy, brian.doy@alcoa.com.au or 0404 800 690
 
About Alcoa
A global leader in lightweight metals technology, engineering and manufacturing, Alcoa innovates multi-material solutions that advance our world. Our technologies enhance transportation, from automotive and commercial transport to air and space travel, and improve industrial and consumer electronics products. We enable smart buildings, sustainable food and beverage packaging, high performance defence vehicles across air, land and sea, deeper oil and gas drilling and more efficient power generation. We pioneered the aluminium industry over 125 years ago, and today, our approximately 57,000 people in 30 countries deliver value-add products made of titanium, nickel and aluminium, and produce best-in-class bauxite, alumina and primary aluminium products.
 
For more information, visit www.alcoa.com, follow @Alcoa on Twitter at www.twitter.com/Alcoa and follow us on Facebook at www.facebook.com/Alcoa.