Alcoa Corp., a leading aluminum producer in the US, said yesterday (January 9) that a production reduction of approximately 30% was expected at its Kwinana alumina refinery in Western Australia due to a shortage of natural gas supply, while the time to resume the full production wasn’t given.
On account of the ongoing gas-supply challenges in Western Australia, a production unit at the Kwinana refinery has been taken offline and process flows will be decreased.
The Kwinana alumina refinery is a joint venture 60% owned by Alcoa, and Alumina Limited owns the residual 40%.
The Australian government announced a 12-month price cap on natural gas and coal prices last December 2022 in order to limit the rising energy prices, while natural gas producers believed that would pose a risk to supply.