Reply To: Soaring Aluminum Prices Boost Alcoa Earnings to Highest Growth Rate in Over Five Years

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TradersCom
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PITTSBURGH, August 30, 2022–(BUSINESS WIRE)–Alcoa (NYSE: AA) announced today that it will curtail one third of its production capacity at its Lista smelter in Norway to mitigate high energy costs for the site.

The Lista smelter has three potlines with an annual nameplate capacity of 94,000 metric tons per year. The curtailment of one potline, or approximately 31,000 metric tons, will begin immediately and is expected to be complete within 14 days. The employees will remain to complete an orderly shutdown of the one potline and to be ready in the event of a restart.

The site is currently exposed to spot energy pricing, which has increased to above $600 per megawatt hour. In the fourth quarter of 2022, the energy situation for the site is expected to improve due to a favorable agreement with power utility Statkraft that will provide more predictable energy costs throughout the remainder of the year and into 2023.

Globally, approximately 65 percent of Alcoa’s global smelting portfolio is currently powered by long-term energy contracts linked to the LME aluminum pricing; approximately 30 percent has either fixed price or self-generated pricing, and the remaining percentage is exposed to short-term markets, which primarily covers consumption at the Lista smelter.

https://finance.yahoo.com/news/lista-smelter-norway-partially-curtail-123000582.html