Alcoa's Australia unit flags 30% production cut at alumina refinery (updated)

Alumina

09/01/2023 05:48

(Adds background on Australia gas prices, further details)
       Jan 9 (Reuters) - 
    Aluminium producer Alcoa Corp  AA.N  said on Monday it
expects production at its partially owned Kwinana alumina
refinery in Western Australia to be cut by about 30% due to a
shortage of gas supplies. 
  
    An unit of the refinery, majority owned by Alcoa in a joint
venture with Alumina Ltd  AWC.AX , has been taken offline and
process flows will be reduced, the aluminium producer said in
statement.
        Australia's government announced a 12-month price cap on
gas and coal prices in December 2022, in a bid to quell rising
energy prices, but natural gas producers have said this may put
supply at risk. 
    The Kwinana refinery has resorted to using diesel instead of
gas for some of its operations, as a result of the shortage. 
        Alcoa did not set out a timeline for when it will resume
full production. 
  
 (Reporting by Harshita Swaminathan; Editing by Sherry
Jacob-Phillips and Nivedita Bhattacharjee)
 ((Harshita.Swaminathan@thomsonreuters.com;))