Alumina's JV AWAC production dips ahead of Alcoa takeover
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The news: Mining investor Alumina’s Alcoa World Alumina and Chemicals (AWAC) joint venture with Alcoa has reported lower production during the June quarter, ahead of the company’s impending merger with the US aluminium giant.
The numbers: The AWAC JV, in which Alumina holds a 40% stake, saw its refining business output slip to 2.4 million tonnes from 2.5 million tonnes during the previous quarter, following full curtailment of the Kwinana plant in WA.
As a result, mining output was 9.2 million tonnes, down from 9.6 million tonnes during the previous quarter.
However, stronger realised prices for shipments contributed to higher earnings of USD180 million ($266.58 million) to USD190 million for Alcoa’s alumina segment business, which includes AWAC.
The context: The quarterly numbers are part of Alcoa’s preliminary quarterly results ahead of shareholder meetings on 16 July and 18 July to vote on the merger.
The two JV partners in March announced their backing for a $3.4 billion takeover deal by Alcoa that would see Alumina shareholders own 31.6% of the combined group.
The merger is expected to simplify the corporate structure of the AWAC business, enable more efficient funding and provide shareholders exposure to a more geographically diversified portfolio.
The source: ASX announcement
