Issue 11, 3rd Quarter 1999

NEWS FROM THE "ENERGY/ALUMINUM INTERFACE"

Current projects are identified by region. Upcoming projects are grouped by year, then by country. The resulting capacity changes are tabulated and inputted to adjust the World Capacity Matrix Forecast.

Contents

Major Projects Currently In Progress (return to Contents)

• Nag Hammadi (Egypt) - Commissioning of a 55ktpy expansion was completed by January 1999. (EnalPanel) Revamping of Söderberg lines is in progress, to be completed by 2003, with an increase in capacity of 64 ktpy. Then, a 7th line of 55 ktpy in 2005. The 2^nd potroom (55 ktpy) has already been transformed from 160kA VSS to point feeder prebake pots (PFPB) with 200 kA current intensity, but not yet started up. (EnalPanel) VAW provided assistance to develop the experimental pilot prebake potlines. (MetalBulletin) (According to one panelist, it seems quite doubtful that VAW provided assistance to develop the experimental pots, as these were developed from VAMI from Russia and the Egyptians themselves. (EnalPanel)) Start-up of the new anode production plant is heavily delayed. (EnalPanel) 100% of anodes are bought through Alusuisse (ex-Aluchemie and ex-Lauralco) (EnalPanel) Egyptalum has chosen the French consortium of Cegelec and Aluminium Pechiney to modernize the process control system for the three existing potlines, along with the installation of the control system for the new line (for a total of 552 cells). (Aluminium)
• Maputo (Mozambique) - Phase I is under construction: 245 ktpy to start up over 2000-2001. Equipment for anode rodding was being shipped from France at the end of May '99. (EnalPanel)
• Ikot Abasi (Nigeria) - In mid-June, Alscon suspended production due to a lack of funding from the Nigerian government. (MetalBulletin) Nigeria may lose $200m per year in foreign exchange earnings following the closure of Alscon, according to Nigeria's Assn of Primary Aluminium Producers (APAP). The APAP and regional political leaders have been putting pressure on the government for its promised assistance to Alscon. (MetalBulletin) The APAP - representing the country's downstream aluminum companies - has also called for the lifting of the 10% import duty on aluminum ingots and billet since Alscon remains closed. (MetalBulletin) The military government, which handed over power to civilians in May, had promised $78-mil to be used to complete the dredging of the Imo River and the anode plant. Alscon had hoped to reach 75% capacity by mid-'99. (MetalBulletin) Metal Bulletin has concluded that the Nigerian government may not have supplied the promised $78m because of what it considers to be a "high ratio of expatriate staff", which it claims are costing the company "a fortune". (MetalBulletin) Production could resume within the next three months, according to Nigeria's Minister of Mines & Power - although more than $235m will be needed to bring the smelter to full capacity, while at least $45m is required for operational costs. Market sources remain extremely skeptical that the necessary funding will be available. (MetalBulletin) In addition to these funds, the previous military government had also pledged to privatize the smelter. (MetalBulletin) As of early August, the government has resolved to go ahead with plans to divest its 70% shareholding in Ikot Abasi. Industry sources believe that Reynolds may increase its equity in Alscon. The Minister of Mines & Power is reported to be insisting that before Alscon opens up for bids, both Reynolds and Ferrostaal must pay for their outstanding shares and also contribute to increase the share capital. (MetalBulletin) Reynolds and Ferrostaal refuse to pay what the government wants. Alcoa will now determine what is going to happen. (EnalPanel)

• Aluar (Argentina) - Production from the 72ktpy expansion was scheduled to begin in mid-May. Full production is expected in the autumn of '99. (Reuters) Work for revamping of the pot control system of lines 1 and 2 started in ’98. (EnalPanel)
• Alma (Canada) - 375 ktpy over 2000-2002. (EnalPanel) This greenfield project, which is under construction, will replace the existing obsolete lines at the nearby (2.5km away) Isle Maligne site and other obsolete lines in Quebec. (EnalPanel) Earlier this year, Alcan decided to completely shut down the old Isle Maligne smelter by the end of '99, rather than September 2000 as was planned. (Platt'sMtlWk) The first potroom was definitely closed in April '99. Potrooms 2 and 3 were to follow in August and September this year. (EnalPanel) The Alma project, with 432 Péchiney AP30.pots in 1½ lines, has an estimated cost of $1.6bn and a startup date of late 2000. (AMM, Financial Times, MetalBulletin, EnalPanel) According to one panelist, Alcan has never said that they will shut down more capacity in Quebec than only this smelter. They count on 300 ktpy plus capacity once the Alma smelter has started up. (EnalPanel)
• Alouette - Sept-Iles (Canada) - The smelter underwent a revamping during which amperage was increased from 300 to 328 kA, resulting in DC power consumption of 13.0 kWh/kg Al and a capacity increase to 235 ktpy. The project was completed in 1998. (EnalPanel)
• Hawesville (USA) - First metal was produced from Hawesville's fifth potline in April. 100 new employees were hired for the new line. (MetalBulletin, Platt'sMtlWk) As of mid-June, 46 of the 112 new pots were operational. The line is on schedule to be fully operational by September 20. (MetalBulletin) (See Other Items of Interest for news regarding NSA strike and sale.)
• Massena Reynolds (USA) - This smelter is undergoing a revamping which will add 10ktpy in 1999. (EnalPanel)
• New Madrid (USA) - 33 ktpy capacity increase due to anode size increase in 1999. (Aluminium Today) Noranda is on track to complete its expansion at New Madrid by the end of this year. (MetalBulletin)
• Warrick (USA) - Alcoa, Fluor Daniel and SNC Lavalin have awarded $30-million in contracts to ABB Environmental for emissions-reduction and alumina handling equipment at Alcoa's Warrick and Wenatchee plants. The new systems should be operating by mid-2000. (AMM)
• Wenatchee (USA) - See Warrick (above).
• Alcasa (Venezuela) - 50ktpy of capacity was idled in 1998 in order to undertake a revamping. The project is to be completed in 1999. (EnalPanel) No work has started on revamping the idled capacity of 50 ktpy. (EnalPanel)

Asia: (return to Contents)

• Baotou (China) - Adding more pots for an additional capacity of 30ktpy. (Aluminium Today) 90 prebake pots (135kA) are being added for 30 ktpy. (EnalPanel)
• Chongqing (China) - 55 ktpy expansion to be completed in 1999-2000. Addition of 1 prebake potline of 124 pots, 50 ktpy, is now under construction. The existing Söderberg potline is 55kA, corresponding to 86 pots. (EnalPanel) We expect that the Söderberg line will be shut down as the prebake expansion starts up.
• Danjiang (China) - A 30ktpy expansion to reach 53ktpy. This 30ktpy expansion involves the relocation of the remaining Toging potline. The line is composed of 100 VAW pots, running at 115kA. (Aluminium Today) VAW only had 92 end-to-end pots at Toging, so some pots have been added. The VAW pots were not relocated, only parts have been shipped. What has been used from the Toging smelter is: the pot superstructures, operation panels, anode stems, alumina conveying system and some generators. The new electrolysis pots have been designed by Guiyang Aluminium Magnesium Design Institute. The new pots use VAW-ELAS pot control. (EnalPanel) According to another panelist, the new electrolysis pots design are entirely VAW design. The Guiyang Al Mg Design Institute has carried out the detailed engineering. (EnalPanel)
• Fushun (China) - Fushun is made up of two parts: three obsolete (60-65kA) HSS lines with a capacity of 65 ktpy and an energy consumption of about 16kWh/kg Al; and a newer SWPB line with a current of 140kA and a capacity of 30ktpy. The obsolete pots are being replaced by a new PFPB line with a capacity of 85 ktpy and a current of 180 kA. The new pots are based on Japanese technology (center-worked prebake) but have been modified by the Chinese to include point feeders instead of bar breakers, long-side risers to improve magnetic conditions, and better process control equipment. The pots could eventually be run at 200 kA. The investment of US$118.2 mil (which covers the potrooms, busbar, cranes…) means an investment of approximately US$1400 per installed ton. Whereas the obsolete lines demand about 1050GWh of energy, the new line (with 30% more capacity) will demand about 1150GWh (only about 10% more). (EnalPanel)
• Hanzhong (China) - 40ktpy expansion to be completed in 1999. This smelter started up in 1996 with a capacity of 40ktpy. After negotiating better power rates, the smelter is now doubling capacity with a PFPB, 160kA potline, using China's Shenyang technology (used at Guizhou). The expansion is almost complete. (Aluminium, EnalPanel)
• Luoyang (China) - An expansion of 50 ktpy to be completed in ‘99. (MBR) The smelter is owned by Luoyang Xin’an Electricity Corp. (Henan government, not central government). Existing capacity is 25 ktpy, expanding using same prebake technology as Pingguo, with a current of 180kA. (MBM)
• Pingguo (China) - Pingguo is planning to boost smelter capacity to 127ktpy following the installation of new technology at the site. According to one source, 32 320kA prebaked cells were being installed in June with a total capacity of 27ktpy, to come on stream on July 1. (MetalBulletin)
• Pingyin (China) - Pingyin will raise its ingot output by 23% in 1999 to reach maximum capacity of 32ktpy compared to the 26kt achieved in 1998. Electricity costs were high in 1998, but power charges have been cut. 150 pots have been running since January. All 170 pots should be in operation by the end of the third quarter. (Platt'sMtlWk)
• Qingtongxia (China) - 100 ktpy expansion to be completed in 2002-2004. The smelter is currently being expanded by 100 ktpy, using 185 kA prebake pots (Guiyang technology). (AlumVerlag) The work is expected to be completed in 2001. (Platt’sMtlWk) The firm orders for anode production equipment from France and Switzerland were placed by the end of ’98. (EnalPanel) Upgrading of the two existing Söderberg lines to prebake technology is planned and should take place as soon as the new line 3 is in operation. (EnalPanel) According to one panelist, a smaller expansion of 14ktpy is planned in 2000-2002. (EnalPanel)
• Xiezhou (China) - Completion of 67 ktpy expansion by end of 2002. The Xiezhou Aluminium Plant said its smelter expansion is running "very smoothly" and should be completed as scheduled in April 2000, raising capacity to 65ktpy from the current 30ktpy. Work on phase one started March 1, 1999, and their final aim is to reach 100ktpy. Phase two construction should start by end-2000, after phase one is complete. An estimated Yuan 760-mil ($91.8mil) will be invested in the expansion project. Xiezhou has targeted output of 33ktpy in 1999. (Platt'sMtlWk) Capacity is to rise from 33 to 100 ktpy in 2002. (ABA)
• Yunnan (China) - Expansion of 80 ktpy over 1998-1999. (AlumVerlag) All of pots for the 80ktpy expansion should be completely installed by third-quarter '99 (118 out of 192 running in April). Yunnan then has plans for another 80ktpy expansion in the next two years. (Platt'sMtlWk)
• Madras (India) - 6 ktpy capacity increase from revamping (EnalPanel) Madras has expanded the capacity of its smelter from 25 ktpy to 32 ktpy and has also boosted the capacity at its alumina refinery. (MetalBulletin)

• Portland (Australia) - Increase in amperage to 312kA has increased rated capacity to 345ktpy. (EnalPanel)
• Tomago (Australia) - Expansion of 40 ktpy (addition of 40 pots each to potlines 1 and 2) was in operation at the end of ’98 with an upgrade adding another 20ktpy. Graphitized cathode blocks are now being used in the pots and the amperage at the pots has been raised to 195-200kA, increasing capacity to 450ktpy. (AlumVerlag) The rectifiers have the capacity for a current load of the potlines of 210kA. (EnalPanel)

• Mostar (Bosnia Herzegovina) - Restart of smelter is in progress. Aluminij Mostar managed to produce 50kt of aluminum and alloys and 120kt of baked anodes in total during the last two years. All production is intended exclusively for export. By the end of this year the last phase of electrolysis will start. The production will rise by 20kt of aluminum and 50kt of baked anodes. (EnalPanel) There appears to be significant disagreement between the smelter's management and the government about the status of Aluminij Mostar's privatization. The general manager claims that privatization was completed "a long time ago" and that ownership is clear. The government disagrees. (EnalPanel)
• Essen (Germany) - Reconstruction of line 3 (55 ktpy) was completed in July ‘98. (EnalPanel) Line 3 is running at 160kA (+14%) due to the introduction of Alusuisse magnetic optimization at 94-95% CE. The other two lines will be optimized in the near future. (EnalPanel)
• Stade (Germany) - This 70 ktpy continuous SWPB smelter is undergoing a revamping that includes the insulation of the cell sides (like VSS) and gluing of long PB blocks. The revamping will add 4 ktpy. (EnalPanel)
• Straumsvik (Iceland) - A complete revamping of this smelter is to take place over 1999-2000, adding 15 ktpy. The project has already begun. (EnalPanel)
• Ardal (Norway) - Conversion of Söderberg (presently 50 ktpy) to prebake with added capacity of 40 ktpy in 1999. The Söderberg line is 110 kA and was built in ‘58 (later converted to Sumitomo). Question: What is the status of this project?
• Slatina (Romania) – Revamping of the cells of potroom 10 and a new control system were commissioned in ’97. Work for revamping of cells of room 9 started in ’98 and will be commissioned during the first half of ’99. (EnalPanel) Alro is to invest $14.4 million in its operations this year. The company is negotiating for further investments of $10 million. (MetalBulletin) The proposed merger between Alro and Alprom has been approved by the State Ownership Fund. (MetalBulletin) In June, the tender for an adviser for the privatization of Alro and Alprom was suspended after the World Bank stepped in to iron out problems in the sales process. (MetalBulletin)
• Sayanogorsk (Russia) – An expansion in capacity of 58 ktpy in 1998. Earlier in 1999, twenty 255kA pots that were formerly 300kA test pots (dismantled in 1998) were under construction to start up this year with a capacity of 12 ktpy. (EnalPanel)

• Bandar Abbas - Almahdi (Iran) - This smelter is being built as a technology transfer from Dubai Aluminium: PFPB, 200kA, 220ktpy, 2 potlines. Construction of this smelter is progressing and will continue to progress very slowly, may not reach 220 ktpy until 2004. New financing has been arranged through Gaspeks, a Swiss company with a Uzbekistani background, using a bartering arrangement of gas supplies from Iran against steel supplies from the Ukrainian steel giant SUMY. Yuri Matveev, chief engineer designing VAMI aluminum smelters, is supervising construction. (EnalPanel) The infrastructure allows for future expansions of up to 330 ktpy. Lack of funds still limits the start-up of 40 nearly finished pots (20 ktpy). (EnalPanel)
• Jebel Ali (United Arab Emirates) - Dubal started up the first cell of its 6^th line expansion in June. The new pots will expand production by year-end to 530kt, 36% above the current production capacity of 390ktpy. (AMM)

• Bell Bay (Australia) - 16 ktpy capacity increase in 1999.
• Becancour (Canada) - Revamping to increase productivity by up to 10%, work to start in 1999. Reynolds intends to change over to graphitized cathode blocks thus having the possibility to increase the current load by 5-10% and increase productivity by up to 10% (of its share). (EnalPanel) Pechiney, the technical manager, is introducing the upgrading of AP18 to AP20, a technology learned from the conversion of AP30 pots from amorphous cathode to graphitic cathodes. This will result in an increase of capacity of 10%-12% for all shareholders including Reynolds 50% share. (EnalPanel)
• Grande-Baie (Canada) - Revamping of 183ktpy to take place over 1999-2000. This revamping will increase anode size, increase amperage, and add 18ktpy capacity. (EnalPanel)
• Taiyuan (China) - A 50ktpy expansion. Taiyuan was to add a new prebake line of 50ktpy, to be running partially in 1997. (Shanxi website 1997) The new prebake line was still not running as of the end of ’98. (EnalPanel)
• Tongchuan (China) - 5 ktpy increase in capacity from modernization in 1999-2000 of this small, 175kA prebake. Nissho Iwai and Nippon Light Metals agreed to provide help for the project, which include a bauxite mine and an alumina refinery. (AlumVerlag)
• Yongcheng (China) - 30 ktpy expansion in 1999. Wonson Metals & Minerals, a Hong Kong based privately owned trading company, acquired 51% of the 30 ktpy Yongcheng smelter for $18m, the 49% left being held by Yongcheng Aluminium, itself owned by the employees or local government. The new capacity (doubling present capacity of 30 ktpy) is a greenfield smelter, prebake, using the Guiyang technology. Probably 104 pots and 113kA, which is half of Guizhou. (EnalPanel) Wonson is in the process of installing a power plant for the smelter (2 units, 50 MW each). (MetalBulletin) The construction of Shangqiu Yonghe's power plant has been delayed due to the recent flooding in China. Senior engineers involved in the power plant's construction and commissioning have been deployed to the affected regions to assist in the emergency. (Investor Relations Asia Website)
• Alupuram (India) - Shutdown of 7 ktpy (25 kA) in 1999. Modernization of remaining 21 ktpy to follow. Indal is planning substantial investment to modernize 21ktpy Alupuram. (Platt'sMtlWk) The 25kA line will be shutdown. The company will run only its 50kA line to produce about 13ktpy of metal. (MetalBulletin)
• Belgaum (India) - Indal has decided to completely shutdown the smelter and related plants at Belgaum due to inconsistent power supply and high cost of power. (MetalBulletin, Platt'sMtlWk)
• Lista (Norway) - A revamping of 80ktpy (with additional 10ktpy) in 1999-2001. Expansion of 100 ktpy in 2006. According to Elkem, NOK100m will be used to convert side worked Söderberg pots to point feeder Söderberg pots, the remaining NOK160m will be used for environmental reasons. The conversion will be completed by 2001. (EnalPanel) A 40ktpy expansion is possible if Elkem gets extra energy by adding gas-fired power to existing hydroelectric supply.
• Paranam (Surinam) - Complete shutdown in 1999 (30ktpy) was partially due to market conditions and partially due to technical problems with the 160-170kA VSS lines. If Alcoa can solve the mainly magnetic problems, the smelter might survive at the low power price there. (EnalPanel)
• Sundsvall (Sweden) - The Soderberg pots will be transformed to process controlled point feeding (PFVSS) during the years 1999-2001. The Swedish government will support this project with SKR33.6m. (AlVerlag)
• Mead (USA) - Revamping of 200 ktpy with capacity increase of 40 kpty in 1999-2000. Kaiser announced in '96 that Mead has been experimenting for about 2 years in liaison with Reynolds' R&D the new technology for cathode blocks developed jointly by Reynolds, Kaiser, SGL Carbon, and the US Dep't of Energy's Office of Industrial Technologies (OIT). It is a new cathode material made of Titanium Diboride plus Graphite (TiB₂-G). Higher wettability means that the anode can be closer to the cathode, thus saving 20% in voltage and 10% savings in energy: decrease energy consumption by 1.5kWh/kg. Planned cost of retrofitting: 2.4 cents/lb of capacity. (AlumVerlag) Only experimental pots will be equipped and run with these aluminum wettable "mushrooms". Earnings through retrofit with this technique would be 5 cts/kg of aluminum produced. (EnalPanel)

• Kurri Kurri (Australia) - Conversion from SWPB to PFPB in 2000. The smelter is working on a feasibility study for the introduction of point feeders to the first SWPB potline in 1999. (AlumVerlag)
• Belem (Brazil) - Expansion of 43 ktpy in 2000. (EnalPanel) Expansion of 90 ktpy over 2007-2008. In September '97 Albras' CEO announced a plan to expand capacity by 37 ktpy by adding 36 pots to potlines 2, 3, and 4, thus giving them the same number of pots as potline 1. The project is to be completed by 2000. Magnetic compensation is being introduced with Alcoa's (formerly Alumax’s) technical assistance in '95-'99 (as agreed in ‘96), which would bring total capacity to 351 ktpy. This is on a trial scale on 14 pots. A 5th potline is seriously considered later, if uncertainties are cleared regarding energy contract to be renewed in 2004. Belem, same as all Brazilian smelters, suffered from the country's general energy shortage. Rates have fluctuated for Belem between 10 and 17 mils. (EnalPanel)
• Arvida (Canada) - Horizontal Söderberg lines to shutdown (now 15 ktpy) to zero when the Alma smelter (AP30) starts in 2000-2002 as part of Alcan’s replacement of Söderbergs by new capacity. Prebake lines (150 ktpy) are to be revamped only if the Alma smelter is not expanded from 1½ to 2 AP30 lines, which will not be before 2005. (EnalPanel) After Alma and Kitimat, the replacement of the HSS pots and modernization of the SWPB pots at Arvida is priority 3. (EnalPanel)
• Jiaozuo (China) - 50 ktpy expansion in 2000-2001. Construction of a new 50ktpy line is under way and will be completed by late 2000. An estimated Yuan 1.2-bil ($145mil) has been injected into the project. Jiaozuo plans to operate at full capacity in 1999 at 53kt, up 3kt from 1998. Meanwhile, Jiaozuo's output in the year 2000 might be 13ktpy less than 1999 due to new national environmental restrictions set by the government. If Jiaozuo is unable to meet these standards within this year, their 13ktpy production line will be forced to shut down by year end. (Platt'sMtlWk)
• Qinghai (China) - 100 ktpy expansion to 300ktpy in 2000. Another 100 ktpy expansion after 2006. Alcoa is said to be close to securing a deal to acquire a majority stake in Qinghai. It is extremely likely that if Alcoa takes a majority stake in Qinghai, its alumina will be sent to one place only, the Qinghai smelter. (MetalBulletin)
• Sanmenxia (China) - 50 ktpy expansion in 2000. Project to expand 33ktpy smelter by 50kpty has been delayed. Originally the expansion was to be completed by the end of 1999, but now that has been delayed. (Platt'sMtlWk)
• Yangquan (China) - 30 ktpy expansion in 2000-2001. Planned to begin construction in 1998, but was still seeking funding. (Platt’sMtlWk)
• Grundartangi (Iceland) - Expansion to 90 ktpy in 2000-2001 and possibly to 180 ktpy three to five years later. There are plans to expand the existing line by 60 pots in the second phase of the project, scheduled for completion by 2000, bringing capacity to 90 ktpy. A panelist believes that the expansion cannot take place that soon, possibly in 2001. (EnalPanel) CVC is permitted to expand to reach 180 ktpy and plans to put the infrastructure in place to at least double capacity. (MetalBulletin) The date for the expansion to 180ktpy has not been determined, but it might begin within three or four years. (MBM) Nordural is still in talks with Landsvirkjun over increased electricity supplies for Grundartangi, but could sign a contract in July. (MetalBulletin)
• Qeshm Island (Iran) - 33 ktpy in 2000. This is the transfer of one of the ZSNP (Slovakia) lines. This project is very unlikely as the Elkem technology is obsolete and dirty and a site of 35ktpy is not economical. (EnalPanel)
• Tiwai Point/Bluff (New Zealand) - 5ktpy capacity increase from modernization in 2000 (MB conference)
• Krasnoyarsk (Russia) - A complete revamping over 2000-2005 is planned. It will add 80ktpy of capacity. (EnalPanel) Krasnoyarsk has not decided yet how to increase capacity by approximately 10% (80 ktpy). It will definitely not convert to prebake technology. Once decided it will take a minimum of four years to reach that goal, starting from the year 2000. (EnalPanel)
• Sayanogorsk (Russia) - Planned expansion of 104ktpy (line 5) in 2000-2001. Another expansion of 104ktpy (line 6) in 2002-2003. 255kA technology to be used. A conversion of SWPB to PFPB is planned over 2000-2004 (EnalPanel) Ownership is Sibirsky Aluminy (69.16%), TWG (14.14%), Gavrohe Investments (12.61%) A panelist estimates the ownership as Sibirsky Aluminy (75%), TWG (15%), Banks (10%), with the regional Khakassia government being involved through the banks' share. (EnalPanel) Sibirsky Aluminy said it is planning to increase capacity at SaAZ to 620ktpy by 2003, with construction of additional facilities starting in mid-2000. Current capacity, including the recently completed expansion, is 380ktpy. The expansion would rely on investment of $480m, and the company is currently in negotiations to find a partner for the project, as well as to secure syndicated project finance. (MetalBulletin)
• Kinlochleven (United Kingdom) - Complete shutdown in 2000 linked to expansion at Lochaber.

• Jiamusi (China) - 50ktpy smelter in Heilongjiang province around 2001. Jiamusi Aluminium has plans to build a 50ktpy plant in northeastern Heilongjiang province. Construction is expected to start by 1999 or 2000, but falling prices and insufficient funds make a completion date uncertain. (Platt’sMtlWk)
• Zhongzhou (China) - 200 ktpy around 2001. New greenfield capacity to reach 200 ktpy by 2000. (ABA)
• Inota (Hungary) - Power plant by 2001. Inota is currently paying 3.75 cents per kWh to local electricity utility Edasz. As of Oct. ’98, Magyar Aluminium was still planning to build its own 100MW power plant (76MW for Inota, 14 by Ajka refinery, rest sold to national grid). A final decision on the power plant was expected by the end of ’98. Magyar Al. is also lobbying the government to supply power to industrial users at a preferential rate. (MetalBulletin) As of May '99, Magyar Aluminium had not given up its plan to construct its own dedicated gas-fired power station, in spite of improvements in the cost of electricity at Inota. (MetalBulletin)
• Renukoot (India) - 15 ktpy capacity increase from modernization in 2001. (MB conference) 60 ktpy expansion in 2001-2002, another in 2003-2004. Instead of pursuing the Orissa greenfield project, Hindalco will upgrade the Renukoot facility. (AMM) Instead of building a greenfield smelter using VAW Toging's 180kA side-by-side technology, Hindalco decided to add a brownfield line (using the same technology) of 60 ktpy (first stage) and 120 ktpy (second stage). Time frame: 2001-2002. (EnalPanel) Another panelist states that Hindalco will add only 60 ktpy in 2 potlines (EnalPanel) (we assume using the technology of the other lines.)
• Sunndalsora (Norway) - We foresee a revamping of obsolete capacity (66 ktpy) with a 15 ktpy capacity increase in 2001 and a further expansion of 80 ktpy in 2004. Sunndalsora combines an 85 kA Söderberg with a 150 kA prebake. Two approaches to expansion have been discussed. According to LMA, Sunndal is considering a 200ktpy expansion using Hydro 230kA technology. The Söderberg potrooms would be leveled to make room for the new potrooms. (LMA) According to one of our panelists, a dual project is highly probable for the years 2003-2004: the conversion of old VSS pots to PFPB and a one line expansion (184 pots, PFPB, 160kA, 80ktpy). Although this expansion would create more jobs and take advantage of available energy, the environmental commission opposes it. (EnalPanel) Anthony Bird forecasts capacity to rise from 138 to 204 ktpy in 2000. (ABA)
• Konin (Poland) - Revamping of 65 ktpy with a capacity increase of 13 ktpy and expansion of 17 ktpy in 2001-02. This depends on Impexmetal, present owner, finding a foreign partner, which is possible. In 1998, Impexmetal considered several plans (all in very early stages) to increase primary production. According to Konin, the electrolysis computer control system has started and a new alumina pot-feeding system has been implemented. (Huta Aluminium Konin website)
• Slovalco (Slovakia) - 35 ktpy expansion between 2001 - 2003. A decision is to be made in 1999, construction to start in 2000. Startup to be between 2001 and 2002. (Reuters, MetalBulletin)
• Lochaber (United Kingdom) - Increase amperage from 180 to 200kA, adding 8ktpy to capacity in 2001-2002. (EnalPanel, AlVerlag)
• Goldendale (USA) - Installation of point feeders to VSS pots. Increase in capacity from 167ktpy to around 200ktpy in 2001-2003. Norsk Hydro is funding a $55m project to install point feeding technology and increase casthouse capacity. (Platt’sMtlWk, AlumVerlag) At present there are only test pots using Hydro's pointfeeder and magnetic compensation technology. The results will be known late in 2000. Therefore the expansion of 30-33 ktpy will take at least until 2003. (EnalPanel)

• Sumgait (Azerbaijan) - Small probability of a conversion to prebake of this 60ktpy HSS plant over 2002-2006. There has been talk of such a conversion for several years and it has been studied by Kaiser Engineers. The smelter plans to become a joint stock company in order to encourage financing for the upgrade. (AlVerlag) The smelter is currently idled. (LMA)
• Alba (Bahrain) - 250 ktpy expansion over 2002-2004. Alba may increase its primary aluminum capacity by 250ktpy following its decision to complete a feasibility study into the plant's expansion. The study will be completed in one to one-and-a-half years, after which a decision would be taken on the proposal. The expansion would most likely take the form of a new potline. (MetalBulletin) The expansion, once decided, will take not more than 3 years. Therefore 250 ktpy expansion till 2005 is more likely than 2007-2008 given the situation that Alba wants to remain the largest smelter in the region and not Dubal. (EnalPanel)
• Beauharnois (Canada) - Complete shutdown in 2002 to coincide with start up of Alma.
• Lanzhou (China) - 100 ktpy prebake expansion to replace existing Soderberg capacity around 2002. Lanzhou plans to build a new 100ktpy smelter equipped with 200kA prebaked cells in the Lianghai Development Zone at an estimated cost of around 1.5bn yuan. Lanzhou has already submitted an application to the State Economic & Trade Commission for approval. If everything goes smoothly, the project will take up to two years to complete. Lanzhou will raise capital for the project by listing its 97%-owned Lanzhou Aluminium Holdings Co either on the Shanghai or Shenzhen stock exchanges. Once completed, the new plant will replace the company's existing 60kA Soderberg smelter. Lanzhou is also keen to team up with a foreign partner. (MetalBulletin)
• Pingguo (China) - 80 ktpy expansion in 2002, 100 ktpy in 2005. This smelter has the lowest production cost in China. (AluminiumToday) Expansion plans, if endorsed, will double current output of both alumina and aluminum ingots to 600 ktpy and 200 ktpy respectively. The long-term target is for the plant to produce 1Mtpy of alumina and 300 ktpy of aluminum. (MetalBulletin) Capacity is to rise from 132 to 212 ktpy in 2002. Probability of further expansion to 312 ktpy with a completion date of 2004 is 20%. (ABA)
• Pingyin (China) - 70 ktpy expansion over 2002-2003. Pingyin plans to construct a new 70ktpy ingot line by early 2000. An estimated Yuan 1-bil ($121-mil) will be injected into the expansion project. Negotiations with the State Economic and Trade Commission are under way. Once the project has been approved, they can start construction next year. The expansion is to be completed by 2003. Pingyin's capacity will then be increased to 100ktpy. (Platt'sMtlWk )
• Yanji (China) - 150 ktpy expansion over 2002-2007. Company plans a flotation in ‘99 to obtain funding for the expansion. (Platt’sMtlWk)
• Lannemezan (France) - Complete shutdown in 2002-2004. The smelter is scheduled to be shut down definitely between 2000 and 2005. (AlVerlag)
• Angul Orissa (India) - 115 ktpy expansion over 2002-2003. The third potline (to bring capacity to 345 ktpy) has been planned for a long time but was not approved until Feb 3, 1998. (MetalBulletin) The expansion program includes plans to expand power plant capacity from 720 to 840MW. The cost of the smelter and power plant expansion is estimated at $490m. (Reuters) The tenders for the new brownfield anode production line have been sent out. Accepted bidders are KHD (Germany) and FCB (France). (EnalPanel) Nalco has now resumed normal operations following repair work to pots damaged at the smelter and is targeted to produce 218kt of metal this year. The company will add a new potline of 240 pots at its smelter to boost output to around 345kt. (MetalBulletin)
• Hirakud (India) - 30 ktpy expansion in 2002. In May, Indal decided to move 200 pots from Belgaum to Hirakud. (40 pots were transferred from Belgaum to Hirakud in 1998.) (AMM) Indal was to decide by the end of June or middle of July whether to build a brownfield prebake line, 150kA, 60 ktpy, or to double the existing horizontal Söderberg line. (EnalPanel)
• Korba (India) - Conversion to VSSPF in 2002-2003 adding 15ktpy. (EnalPanel) Indal is launching an expansion program that includes bidding for 51% of Balco. (AMM) India's government is likely to sell a stake of up to 51% in Balco by year-end. A change in the company's management is likely to be decided by the new investor. (MetalBulletin)
• Bratsk (Russia) - Revamping of 860 ktpy with a projected capacity increase of 85 ktpy planned for 2002-2005. (EnalPanel) Twelve lines were built between 1966 and 1976 using 160 kA VSS pots, which now have a capacity of 860 ktpy. Earlier in 1999, a new 110 kA VSS line was started up with a capacity of 45 ktpy. Total capacity is 905 ktpy. Algroup is in the process of optimizing busbar design and cathode lining for the 160 kA lines, which could increase the capacity of these lines by at least 10%. (EnalPanel) According to Metal Bulletin Monthly, reconstruction of the electrolysis facility is complete. (MBM)
• Shelekhovo (Russia) - Revamping of full capacity in 2002-2004. South Urals Aluminium Co (Sual) has approved a five-year expansion plan based on upgrading and refurbishing its two core assets, the Irkutsk aluminum smelter (IrkAZ) and the Uralsk refinery and smelting complex (UAZ). Sual plans to maintain its primary aluminum output at 337ktpy this year. It aims to install new electrolytic technology using a dry gas purification system in its existing electrolytic potlines, which it hopes will both reduce dangerous emissions and enable the plant to increase output of primary aluminum. The company also plans to equip one of the electrolytic lines with an automatic alumina feed system. Sual said it plans to modernize paste production at IrkAZ and to equip the plant to process its by-product tailings. (MetalBulletin)
• Kamensk-Uralsk (Russia) - see Shelekhovo above.
• Volgograd (Russia) - Complete revamping with conversion from Söderberg to prebake and capacity increase of 45 ktpy over 2002-2008. This Russian Söderberg suffers from high operating costs. Meanwhile privatization Russian style has transferred ownership 49% to Raznoimport, Russian metal trader, and 51% to employees. As with all Russian smelters, privatization is delayed because of uncertainties on alumina and energy availability and cost. Two Söderberg lines are closed down for good. Therefore, the capacity is down to 130 ktpy. They got a new power contract in 1998 which brought power costs down to 15 mils. (EnalPanel) Engineers from the All-Russian Aluminium and Magnesium Institute of St. Petersburg were to complete a plan for a $500-mil modernization by the end of ‘98. The main equipment suppliers for the upgrades could be French or Swiss firms. The smelter will start talks with potential investors after the plan is completed by designers. The plan focuses on converting two Söderberg lines to prebake technology and the introduction of new computerized process control systems. Targets are to save electricity and raise output by 14% to 149ktpy. The smelter does not plan to increase actual capacity because it would entail an increase in use of electricity. (Platt’sMtlWk)
• San Ciprian (Spain) - We foresee a complete revamping (adding 10ktpy) in 2002-2004 with a 200 ktpy expansion eventually. (EnalPanel) The expansion would allow this site to replace Aviles and La Coruna (old Söderbergs). This is the most modern Inespal smelter, with Péchiney prebake 143kA technology, which is the same as Mostar’s (Pechiney P-140). (EnalPanel) As part of Alcoa's acquisition, Inespal will benefit from the gradual deregulation of electricity distribution and is planing to build its own generating facilities. (Platt’sMtlWk, LesEchos)
• Trinidad and Tobago (Trinidad and Tobago) - 237 ktpy project over 2002-2004. 237 ktpy expansion after 2006. Attracted by abundant gas supplies and the chance to import aluminum duty-free from this former Dutch colony into the European Union, Hydro chose Trinidad over Qatar in 1998 for the site of a greenfield smelter and signed an agreement with the Trinidad government to build a 474ktpy, $1.5-2.0b plant in Point Lisas, Trinidad, to be built in two equal 237ktpy phases. Construction was expected to begin in 2000, with first aluminum expected in 2002. (AMM, MetalBulletin, Platt’sMtlWk) The first phase is highly probable before 2005. The second phase is more probable after 2008 in order to give Hydro time to evaluate potlife. (EnalPanel) An environmental impact study is currently under way in Trinidad for Hydro's project. (MetalBulletin) The feasibility studies into possible primary aluminum smelters in Iceland and in Trinidad are still continuing and "one or the other" will eventually be selected. Hydro regards a sustained price of $1,600 per tonne as necessary before proceeding with either the Iceland or Trinidad smelter projects. (MetalBulletin) Supported by tax breaks and pre-sold supply contracts in the United States and Spain, a partnership was formed a few years ago by Amoco Trinidad, British Gas Trinidad, Repsol of Spain, Cabot LNG of Boston and Trinidad's state gas company to build a $1 billion liquid natural gas (LNG) processing plant. The Atlantic LNG plant was built in record time and under budget and made its first shipment this April to the USA. Among the encouraged industrial development tied to Trinidad's gas supplies: Norsk Hydro's plans to build a $1.6billion smelter that will eclipse Atlantic LNG as the largest investment in the Caribbean. (AP)
• Seydisehir (Turkey) - 60 ktpy revamping with a capacity increase of 40 ktpy over 2002-2004. In 1993, the banking arm of Etibank was restructured and transferred to the privatization administration under the name Etibank Banking. This was privatized in March 1998, while at the same time the industrial conglomerate became a holding company - named Eti Holding - with seven main subsidiaries including aluminum. Eti Aluminium is the second largest revenue generator for Eti Holding and the government is of the opinion that it is not suitable for privatization in its present condition and would rather invest in it first. The plan is to both modernize and increase smelter capacity to 100ktpy, for which the company says it can produce sufficient alumina, and a feasibility study is currently being carried out by VAW of Germany which is expected to be complete next month. The modernization includes converting the smelter from Soderberg to prebaked anode technology, and if the plan were approved, construction would probably start next year. (MBM) One of our panelists thinks that a conversion to VSSPF is more likely than a conversion to prebake. (EnalPanel)
• Turkmenistan (Turkmenistan) - 162 ktpy greenfield in 2002-2004. The Ministry of Energy and Industry of Turkmenistan has been interested in the possibility of a greenfield primary aluminum smelter within the country's borders for at least the past few years. Now, the US government and Bechtel are sponsoring a feasibility study for a 162ktpy smelter in the southeastern region. Initially, the Ministry expressed interest in a smaller project (50ktpy). The feasibility study, to be undertaken by Bechtel and Reynolds Metals, is expected to cost US$752,000. The project should take advantage of alunit ore deposits in the country. Natural gas power will be used. (EnalPanel, Platt'sMtlWk, AlumVerlag)

• Tomago (Australia) - An expansion of 235 ktpy (if AP30 is used) or 150 ktpy (if AP20 is used) over 2003-2005. (EnalPanel) A decision on whether to build a fourth line, which would require new energy contracts, is to be made by the end of '99. (Reuters) Probability of an expansion using AP20 is high before 2005 because of power availability, performance is best in the "AP18 club", and the infrastructure exists. Probability of using AP30 for expansion is low because the AP30 is less fool-proof, needs different (wider) cranes, increases capacity by 240ktpy and therefore needs 60% more investment. (EnalPanel) The planned fourth potline (planned for 2002-2003) at Tomago is in doubt after management raised fears over safety, emission control and labor costs. These were subsequently confirmed by company and union spokesmen. (CRU) A feasibility study for a fourth potline is being undertaken. (EnalPanel)
• Sao Luis (Brazil) - Expansion of 115 ktpy over 2003-2004. A major expansion of this 360 ktpy, Alcoa technology smelter is planned, but would depend on the go-ahead of a $1.2bn hydroelectric plant doubling the capacity of the Tucurui plant on the Amazon. (AlumVerlag) Probability of 120ktpy (1 line) expansion is high before 2004. This is because low priced alumina is nearby, power price is around 15 mills, infrastructure exists, and freight costs are low. (EnalPanel)
• Baie Comeau (Canada) - Expansion of 115 ktpy over 2003-2005 with shutdown of Söderberg capacity in 2003-2005. In ‘96 Reynolds reached an agreement allowing completion of the modernization and environmental upgrading of the plant. Reynolds intends to increase production by changing over to graphitized cathode blocks, thus having the possibility to increase the current load by 5-10% (189-195kA). (EnalPanel) We expect this expansion after the current modernization and environmental upgrading of the plant.
• Shawinigan Falls (Canada) - Complete shutdown in 2003.
• Aba (China) 100ktpy in 2003-2004. In Oct. '98, Aba (Sichuan province) was discussing a possible joint venture with Alcoa to expand its capacity by 100-200 ktpy from the current 14 ktpy. An Aba official claims Alcoa is interested because electricity costs are comparatively lower in the Sichuan province since hydro power is used. The project is expected to take two years once construction begins. (Platt'sMtlWk)
• Baiyin (China) - 45 ktpy expansion to 100 ktpy around 2003. Chinese and US investors withdrew from the Baiyin expansion projects after the provincial government lowered electricity costs. Xincheng Electric (Hong Kong) and AES (US) were mainly interested in building a new power plant for the smelter, but insisted on charging a higher price. The expansion will be 50ktpy, but there is no timeframe for its completion. (Platt'sMtlWk)
• Shanxi (China) - 240 ktpy spread over 2003-2006. This old project is progressing slowly. Alcan is moving ahead with the feasibility study for the integrated 240 ktpy smelter and dedicated power facility. The study will cost about $5m and is scheduled for completion some time in 1999. (AMM) Alcan is to provide technical and management know-how as well as financial investments. (Aluminium)
• Xianning (China) - Complete shutdown in 2003.
• Zunyi (China) - A 70ktpy expansion to 100ktpy in 2003-04. Due to market conditions, Zunyi may delay its expansion until 2001 (from 2000). (Platt’sMtlWk) Anthony Bird gives this project a low probability and a completion date of 2003. (ABA)
• Madras (India) - Expansion of 112 ktpy over 2003-2004 using Pechiney AP30. The area is already being leveled for the expansion. Phase 2 (112ktpy) of the expansion is to follow a few years later. (EnalPanel) Sterlite will either pursue this two-phase expansion or the Jharsuguda greenfield. (See Jharsuguda - 2005) We think the expansion is more likely. (Enal) Sterlite is now (’99) setting up a captive coal-based power plant (75MW) for the Madras smelter and alumina refinery. It should be completed by March ’99. (Platt’sMtlWk) A delay in commissioning of a new 75MW captive power plant at Madras has forced production to be cut to just 20% of capacity. Full production is expected to resume in June once full power is available from the captive power plant. (CRU)
• Karmoy (Norway) - We project a 165 ktpy expansion (Péchiney AP21) over 2003-2005 (probably with an integrated carbon plant.) Probability of an expansion using Pechiney, 210 kA, 165ktpy is high before 2009 because power is still cheap (Scandinavian exchange of power), space still available, infrastructure is there. (EnalPanel)
• Kidricevo Talum (Slovenia) - An expansion of 40ktpy (80 PFPB pots) is probable once the smelter is privatized in 2003-2004. SWPB pots would be shut down at the same time. (EnalPanel)
• Hillside (South Africa) - 25 ktpy increase in capacity in 2003. (MetalBulletin)
• Ravenswood (USA) - 50ktpy expansion in 2003-2005. Century Aluminum is considering the addition of a potline at Ravenswood. (MetalBulletin) Century Aluminum and the USW reached a tentative agreement for a new labor contract at Ravenswood on June 30. (MetalBulletin) On July 2, the USW ratified a four-year labor contract at Ravenswood. (MetalBulletin)
• Sebree (USA) - 75 ktpy expansion in 2003-2006. An expansion using PFPB Alcoa 205kA (Alumar tech.), 140 pots, 75ktpy is highly probable before 2009 because power deregulation will provide a better power price. New technology would require an investment of less than $2,500/tpy. (EnalPanel) Alcan and the USW union are not expected to begin bargaining until mid-October. (Platt'sMtlWk)

• Lithgow (Australia) - 450 ktpy in 2004 - 2005. The bankable feasibility study for the proposed smelter at Lithgow is expected to be completed by December and construction is scheduled to start in May next year with first production in January 2002. Full production at the rate of 450ktpy is planned for June 2003. (MetalBulletin) The project is being sponsored by Aust-Pac and the study is being carried out by Babcock & Brown, with the support of SNC-Lavalin. (Platt'sMtlWk) Only two issues could derail the project: getting a suitable power agreement and the state's acceptance of the environmental impact statement. Getting financing for the A$1bn plus project is the least of its problems. The government is expected to give the project the green light as the smelter is to be built on an industrial estate set aside for this type of development. The smelter will require 850MW to be sourced from three separate suppliers; and although Aust-Pac is prevented from talking to the three generating companies as a consortium, good progress is being made. Discussions with potential suppliers of alumina (in Australia) and potential customers are also well-advanced. Aust-Pac plans to bring in a majority partner, likely a supplier of technology. Discussions with a potential investor are well-advanced. Aluminum production will be targeted for the Asian markets. Lithgow is 200km by rail from Port Kembla and was chosen because of the existing infrastructure and availability of a skilled workforce. (MetalBulletin) This project was originally intended for Southeast Asia, but the site was changed due to unstable conditions there. (MetalBulletin)
• Alouette - Sept-Iles (Canada) - Possible expansion of 265 ktpy over 2004-2007. (EnalPanel) Using AP30 technology. (EnalPanel) Alouette is in a standoff with Hydro-Quebec over a power deal for its planned expansion. (AMM) A decision by the Quebec Energy Board on a possible rate reduction was expected by the end of Jan. ’99. (AMM) Anthony Bird's expansion forecast: 281 ktpy (expanding to 510ktpy); completion date - 2003; probability - 0.3. (ABA)
• Becancour (Canada) - An expansion of existing lines by 40 pots each (total 60ktpy) in 2004-2005 with addition of 4^th potline (140 ktpy) over 2006-2008. (EnalPanel)
• Auzat (France) - Complete shutdown in 2004-2005. Pechiney has decided to shut down the smelter in the year 2005. (AlVerlag)
• Hydro Iceland (Iceland) - 200 ktpy possible in 2004. Hydro will decide by June 2000 whether to proceed with a planned 120ktpy smelter in Reyoarfjorour, Iceland. Hydro, along with Iceland's national power company Landvirkjun and the country's Ministry of Industry & Commerce, signed a declaration on June 29 concerning the undertakings of each party in the project, including further feasibility studies and a time scale for the next eleven months. The project will depend on Landvirkjun starting construction of the Fljotsdalur hydroelectric power plant in the eastern region of the country by June next year. If this goes ahead, the smelter will be commissioned before the end of 2003. An environmental impact report on the power plant is due to be published this autumn, part of the extensive feasibility studies that the three parties involved will complete before making a final decision. Hydro will jointly own a majority share in the project. The project will have the potential to expand to a capacity of 480ktpy. Carbon for anodes will be imported. (MetalBulletin) (Also see Trinidad - 2002) Columbia Ventures recently made a formal approach to the Icelandic government stating its interest in building a smelter in the same area as the proposed Hydro plant. If this project succeeds and construction starts as early as possible, the new smelter could be in production by the end of 2003. It is proposed that the smelter would have a first-phase capacity of 90ktpy. Power would not be available until 2003. Start-up would be timed to coincide with new electricity supplies which are expected to come on stream in the area. (MetalBulletin)
• Indal Orissa (India) 250 ktpy in 2004-2008 (2 phases). VAW or Dubal technology is much more likely to be used than Pechiney. (EnalPanel) The 20% stake previously owned by Tata Iron & Steel Co in the Utkal greenfield alumina project has been reallocated following its withdrawal from the 1m tpy project. The financial adviser to the group is ready to put in draft financing proposals for the project. (MetalBulletin)
• Mosjoen (Norway) - Probable scenario: Expansion of 100 ktpy combined with a shutdown of obsolete pots (50 ktpy) in 2004-05. Alternate possible scenario: Conversion of Söderberg to PFPB with an increase in capacity of 20 ktpy (estimated cost of NOK500-550m). As with most Norwegian smelters, expansion depends on Government energy policy which was paralyzed by environmentalists in the early ‘90s.
• Oman (Oman) - 130-140 ktpy (phase I) over 2004-2008. The technology supplier is most likely to be Dubal. (EnalPanel)
• Bayside (South Africa) - Upgrade of Söderberg lines adding 20ktpy in 2004.
• Steg (Switzerland) - Complete shutdown in 2004-2005.

• Kurri Kurri (Australia) - Expansion by 60ktpy in 2005-2006. If power contracts are favorable, the company will most likely commit itself to the construction of a fourth potline. (AlumVerlag) The future of Kurri Kurri is uncertain after electricity price negotiations stalled. (CRU)
• Valesul (Brazil) - Expansion to 229ktpy in 2005. Valesul is in the early stage of studying a possible expansion to 229 ktpy. Before such a project is possible, a power supply must be found. Construction of the Machadinho hydropower plant, of which Valesul has a 7% share, is on target for start-up in 2002. (Platt'sMtlWk)
• Kitimat (Canada) - Either a 250 ktpy expansion or greenfield nearby in 2005-2007. According to one panelist, Alcan is still considering a greenfield prebake smelter using either Pechiney AP30 or Alcoa 696 technology (215kA). (EnalPanel) AMM reported that Alcan is still considering a brownfield expansion (of 100 to 250 ktpy, depending on market demand) at Kitimat but is in no hurry. A decision would be made in 2003 or 2004 and the project would have a two-year time period to start-up. (AMM)
• Aisen (Chile) - 230 ktpy over 2005-2007. Noranda is near to having talks with prospective partners in this project. Forming a consortium to spread the cost of the smelter is the major task facing Noranda, which is currently undertaking an environmental impact study. In spite of protests by salmon fisheries last year, Noranda does not foresee any major problems. They are still waiting for a permit for water rights at Rio Blanco, necessary for the integrated hydro power project. The smelter is expected to cost $1.6bil and have a capacity of up to 440ktpy. The hydro project is expected to cost another $1bil. Noranda has stated that the earliest start-up date would be sometime in 2005. (AMM, MetalBulletin) A power plant and a new harbor have to be built before the project can start. A hydroelectric power plant with a huge dam will take 5 years at least once financing is undertaken. Therefore the smelter is not likely to come on stream before 2005-6. (EnalPanel)
• Jharsuguda (India) - 250 ktpy in 2005-2009. Sterlite had plans to build a 250 ktpy capacity smelter, a 1m tpy alumina refinery and a 720MW captive power plant. The total project cost is estimated at Rs85bn. (MetalBulletin) The expansion at Madras is more likely to be used to increase Sterlite's capacity. (See Madras - 2003) However, Sterlite is scouting for a partner to build its proposed 1-mil mt/year alumina venture in Orissa. The company has already received "in principle" clearance for a $350-mil loan from Merrill Lynch and has approached Indian financial institutions as well. Pechiney is to provide the technology (an MoU has been signed). (Platt'sMtlWk) Malco is currently conducting a feasibility study into a 125 ktpy greenfield aluminum smelter in Orissa, along with a captive power plant, for an estimated cost of Rs36bn. It has acquired the land for the project and will soon make a decision on whether to go ahead. (MetalBulletin)
• Asahan - Kuala Tanjung (Indonesia) - We foresee a 150 ktpy expansion over 2005-2006. The site would deserve an expansion if an energy source, other than hydroelectric, were found, which is possible. A qualified source close to management says that a future expansion depends on the energy policy negotiated directly between the parent company in Japan and the local utility, and agrees that, in the present structure, power availability limits any future expansion which otherwise would be justified if only by market prospects in Indonesia. (MetalBulletin) Kuala Tanjung saw another sharp fall in output in the January-May period this year as a result of continuing low water levels in Lake Toba. Only 206 of 510 pots are currently in operation. The company's target is to have 285 pots working by the end of the current fiscal year in March 2000. The company plans to produce around 105kt this year. (MetalBulletin)
• Pavlodar (Kazakhstan) - 160-170 ktpy after 2005 using VAMI technology. (EnalPanel) The Kazakhstan ministry for ecology and natural resources has rejected applications from Aluminium of Kazakhstan to build a new smelter at Pavlodar. The company may be asked to consider alternative locations. (Platt’sMtlWk) According to the latest studies, a greenfield smelter using VAMI technology appears very unlikely. (EnalPanel)
• Beira (Mozambique) - 240 ktpy greenfield after 2005. An MoU was signed in Dec. ’98 by Fluor Daniel and the Government of Mozambique to study the feasibility of a second greenfield in Mozambique. Fluor Daniel has begun work on the feasibility study for the 250ktpy smelter. (Reuters) The study is sponsored by the U.S. Trade and Development Agency, with technical assistance from Fluor Daniel, and from Kaiser Aluminum and ABB as Fluor’s subcontractors. The U.S. Government is to put up half of the cost of the study, which is expected to be completed by the end of ’99. This project in Beira would be 500 miles closer to the Cahora Bassa Dam than the Maputo project. (AMM, Platt’sMtlWk, BusinessWire)
• Kandalaksha (Russia) - Modest revamping of 70 ktpy with capacity increase of 15 ktpy starting in 2005 while keeping the Söderberg technology with a Reynolds type modernization.

• Maputo (Mozambique) - Second line of 245 ktpy over 2006-2007. Billiton is already working on an expansion plan. (MetalBulletin)
• Alcasa (Venezuela) - 250 ktpy expansion (5th line) in 2006-2010. An expansion using Reynolds technology is very unlikely. An expansion using Alcoa 205kA PFPB (like Alumar, Brazil) or Pechiney 205kA PBPF (Puerto Madryn, Argentina) is much more likely. Probability of this expansion before 2009 is fairly high because hydro power is available at low cost, space is still available, and the environmental situation will improve after privatization. (EnalPanel) Earlier this year, it was decided that Alcasa is to be sold in parts under joint-venture schemes in the fourth attempt at the privatization of Venezuela's aluminum assets. The operations of Alcasa that are to be sold separately include the Puerto Ordaz rolling mill, lines 1 and 2, lines 3 and 4, the plant's laboratory, and the port. It is as yet undecided whether anodes producer Carbonorca will be sold alone, or as a part of a joint venture with line 5 of Alcasa. The CVG president has proposed issuing $200m worth of bonds to help Alcasa raise cash. (MetalBulletin) Venezuela has again put off the starting date for another effort to sell a controlling interest in its aluminum industry, possibly until some time in 2001. (AMM)
• Bell Bay (Australia) - Expansion of 170 ktpy over 2006-2008. Probably will use Bluff technology. A 4th potline at a cost of A$650m to prolong smelter life until 2025 depends on securing extra power. This was secured in January ‘96 at level of 19 MW only. In any case, Comalco will insist on controlling the power supply, as is now their strategy. Power prices have been secured and guarantee Bell Bay's future until 2014 at the earliest. (MetalBulletin) One of our panelists considers an expansion of 170 ktpy unlikely due to energy problems. (EnalPanel)
• Zaporozhye (CIS Ukraine) - Complete shutdown in 2006-2007. Two 16% share blocks in the smelter will be sold sometime this year. (AMM)

• Guinea (Guinea) - 240 ktpy in 2007-2009. Site unknown. We consider Guinea a good site for a greenfield smelter, primarily due to the proximity of the Friguia refinery. A lot depends on the situation at the refinery. Reynolds has signed a MoU with the Guinean government for the sale of the government's 100% stake in Friguia. Originally, Reynolds planned to use the alumina from Friguia to supply Alscon (Ikot Abasi), but until problems in Nigeria are straightened out, Reynolds may direct its alumina to the Volta smelter in Ghana. (MetalBulletin)
• Jajarm (Iran) - 220 ktpy after 2007. Iran is studying preliminary plans for a new 220ktpy, US$500-600m aluminum smelter, which could be built near to the alumina refinery in Jajarm (expected to open in September). The area is said to have the potential of becoming a self-contained aluminum production center. The smelter would be allowed to have up to 49% foreign ownership. Jajarm has good road, rail and air links, and sufficient gas and electricity supplies. (CRU, MiningJournal)
• AISA (Malaysia) - 240 ktpy in 2007-2008. AISA is concentrating on an integrated gas-power plant scenario with a site on the mainland. (EnalPanel) AISA has decided to build its own gas plant with a capacity of 660MW for the price of US$350 million on a turnkey basis as quoted by Alsthom. (EnalPanel)
• Umm-Said (Qatar) - 530 ktpy after 2007 (Hydro or other producer). Umm-Said is a old project that has been studied and reviewed by all aluminum producers interested in the Middle East. It is a very serious project on an excellent site, but the project competes with others in the Emirates and Arabia. Norsk Hydro and the government of Qatar put talks for a greenfield smelter in Qatar on hold indefinitely. Both cited the weak aluminum market as a reason for the decision. (Platt’sMtlWk) This project is reasonably probable before 2009 because the gas price is low (less than 0.5USD/mioBTU), infrastructure is subsidized, freight cost for alumina is low, and calcined coke would be available from Alba nearby. (EnalPanel)
• Novokuznetsk (Russia) - Revamping of 100 ktpy with capacity increase of 20 ktpy postponed to after 2007. In the past, VAW completed a detailed feasibility study based on conversion to prebake at minimal costs. (EnalPanel) VAW has given up plans to modernize Novokuznetsk. The financial situation and higher than normal Russia power price will delay a revamping. (EnalPanel) NkAZ is discussing the financial aspects of upgrading its 275 ktpy smelter with the help of Alcoa. NkAZ plans to upgrade its pot lines from HSS to prebake anode technology with support from Alcoa. The new technology is expected to almost double output, so the plant now plans to close one of its two potlines when the potlines are upgraded. The upgrade will take four to five years and costs are expected to reach a total of US$500m. (Aluminium) In late ’98, NkAZ signed a 5-year agreement with their power supplier, KuzbassEnergo, ensuring uninterrupted power supplies to the plant at set tariffs. A condition of the agreement is that all electricity bills will be paid in cash. (MetalBulletin)
• Tadaz (Tadjikistan) - Revamping of entire capacity over 2007-2008, enabling plant to produce at full capacity. A IFC-World Bank study, which is to make recommendations on the future structure of Tadaz, was scheduled for completion by the summer of '99. (MetalBulletin) The Tajik president has instructed managers of the republic's sole aluminum plant to raise output to 300ktpy as of the year 2000. The smelter produced only 195kt in 1998 and plans to raise output to 220kt in 1999. The plant has obsolete equipment and needs much more electricity than the republic can supply. The government plans to submit the smelter to an international audit, believing this would attract investment. (Reuters)
• Vietnam (Vietnam) - Greenfield could start up in 2007-2008. In ’97, Daewoo of South Korea signed a letter of intent with the state-owned Vietnam Minerals Corp (VMC) to survey bauxite reserves in Vietnam. The project would investigate the possibility of setting up bauxite mining, alumina refining and possibly aluminum smelting. (Platt’sMtlWk, MBR) In Sept. ’98, the VMC and Pechiney completed a prefeasibility study for an aluminum exploration and production project. The feasibility study should be complete in ’99 and the project could start production by 2005. (SaigonTimes) Vietnam Mineral Corp (Vimico) and Pechiney have signed an agreement to undertake a prefeasibility study to develop a 1m tpy alumina refinery in Landong province near Ho Chi Minh City. The site has around 300m tonnes of proven bauxite reserves and prefeasibility studies are expected to last for two years. There are no plans for a smelter due to a lack of electricity. (MetalBulletin) A lack of power in the area could make this a candidate for an integrated aluminum smelter and power plant.

• Orissa Hindalco (India) - 150 ktpy after 2008. Hindalco has decided to shelve plans to set up a greenfield aluminum project in eastern Orissa state. This decision was based on findings from the detailed techno-economic feasibility study conducted jointly by ICF Kaiser Asia and Bechtel Australia. (Platt'sMtlWk, AMM)
• Kuwait (Kuwait) - 120-180 ktpy after 2008. Kuwait Industries and Raytheon apparently are both competing for this project. Kuwait's government approved a "conceptual study" in November ‘96 that envisioned a 230 ktpy, $1.2bn smelter in the Shuaiba industrial zone and the participation of Raytheon. The project is still delayed (AMM) due to the issues of power availability and energy rates that would be set by a state-owned power company. The government is hesitating to sign a long-term contract at the undisclosed rate originally agreed upon, even though a source says that the rate was higher than either the industrial (3.3 mil/kWh) or residential (6.6 mil/kWh) rates. (Platt’sMtlWk, AMM) Raytheon would use a Reynolds technology. (Platt’sMtlWk) Meanwhile Kuwait Industries’ project has been progressing. Kuwait Industries seems to be in the best position to obtain government license to build and operate a smelter. The power rate should be in line with other greenfields in the Persian Gulf, somewhat more than 10 mils. (EnalPanel)
• Aviles (Spain) - Complete shutdown in 2008 (upon expansion of San Ciprian).
• Alisa (Venezuela) - 80-90 ktpy in 2008-2009 (initial phase). Alisa is a Reynolds project with Reynolds technology. Reynolds confirmed in March ’98 that this project is still considered to be very much alive. Interest may center on having a nearby aluminum source for its Venezuelan automotive wheel venture. (AMM) According to one panelist, the probability of this project is less than 5% because of a bad choice of technology and the size of the smelter is unrealistic for a greenfield nowadays. (EnalPanel)

• Angola (Angola) - According to the Angolan Ministry of Industry, Angola is investigating the possibility of building a greenfield smelter with Prodev International of Switzerland. Foreign participation will be limited to a maximum of 49%. A feasibility study has yet to be performed. (Aluminium)
• Bahia Banca (Argentina) - Aluar has mentioned the possibility of a 250 ktpy greenfield smelter at this port 300 miles north of Puerto Madryn. (AMM)
• Aratu (Brazil) - Partial shutdown (28 ktpy) in 2009-2010.
• British Columbia (Canada) - Alcan, Alcoa, Columbia Ventures Corp., Pechiney and Kaiser Aluminum have all looked into British Columbia as a possible site for a greenfield smelter. (Aluminium Today) Alcoa put the possibility of a project in BC on hold. (BusinessWire, AP, AMM, Platt’sMtlWk) In addition to British Columbia, Columbia Ventures has been considering possible sites in Oregon and Washington for a 90-180ktpy smelter. (Platt’sMtlWk) In Jan. ’99, CVC announced that it would concentrate on its Grundartangi expansion, rather than these greenfields, until the market improves. (Platt’sMtlWk)
• Deschambault - Lauralco (Canada) - Expansion of 227 ktpy to double capacity is possible after 2010. In ‘97, the use of graphitized cathodes permitted an amperage increase from 295 to 325 kA (capacity increase to 235 ktpy). (AlumVerlag, EnalPanel)
• Yangxin (China) - In 1998, there were reports that this small smelter was considering an expansion of 50ktpy in two phases of 25ktpy each. (Platt'sMtlWk)
• Kumera (Finland) - There was talk of Kumera considering the construction of a greenfield smelter in Finland. (MetalBulletin) This project is dead for good as no cheap power was available from Sweden, Finland, or Russia. (EnalPanel)
• Dunkerque (France) - For the long-term, we foresee a possible doubling of capacity. Doubling capacity could justify negotiating a more favorable energy contract and a debt restructuring in a context of job creation in and around the smelter, while reducing total capital intensity of the site. We bet that Péchiney, needing to transfer jobs from other sites, and the present French government, desperate to reduce unemployment, will not miss such an opportunity... A second potline could be envisaged as soon as debt is lighter and Pechiney decides to shutdown obsolete, French smelters. (EnalPanel) An increase of potline current to 320 kA is in progress which would increase the capacity without expansion. (EnalPanel) Usinor's decision to integrate a power plant to be built by Air Liquide next to the smelter is a major breakthrough in France. It is the first major investment in the energy industry totally escaping the influence of EDF. (EnalPanel)
• Atlantal - Keilisnes (Iceland) - 200 ktpy after 2008. Once sponsored by Hoogovens, Granges Aluminium and Alumax. Granges has since sold its Sundsvall smelter in a management buy-out and Alcoa bought Alumax. (EnalPanel) What will be the effect of the acquisition of Alumax by Alcoa? According to one panelist, Alcoa is not continuing talks with Statskraft SF at this time. (EnalPanel)
• Iceland X - A German company supposedly has expressed interest in an aluminum project in eastern Iceland. (MetalBulletin)
• Vlissingen (Netherlands) - Pechiney is planning to integrate a gas-fired power plant. (EnalPanel)
• Bratsk Irkutsk (Russia) - There have been plans for a 200-250ktpy, $1.5b, greenfield smelter in Irkutsk, probably close to the existing Bratsk smelter. The primary investor is to be the Bratsk smelter itself (MetalBulletin, Platt’sMtlWk) At this point, we consider this project to be very uncertain and only for the long term. The plan for a greenfield smelter near Irkutsk has been shelved despite available hydroelectric energy. (EnalPanel)
• Krasnoyarsk 2 (Russia) - The governor of the Krasnoyarsk territory proposed plans to build a 200 ktpy smelter in order to win the ’98 re-election. Since he was not re-elected, it is unlikely that the project will get off the ground. ( Platt’sMtlWk, MetalBulletin, EnalPanel)
• Nadvoitsy (Russia) - Revamping to add 15ktpy over 2009-2011.
• Shelekhovo (Russia) - Expansion of 70 ktpy 2009 or later. This VAMI Söderberg, 130kA (2 lines) and 160kA (2 lines), is rated at 260ktpy capacity. Shelekhovo is to undergo reconstruction costing $180-mil to expand production by 70 ktpy, this includes commissioning of a fifth line. (Platt’sMtlWk) The planned expansion of 2 potrooms (1 potline) would involve VSS 160kA. (EnalPanel)
• La Coruna (Spain) - Complete shutdown in 2010 (upon expansion of San Ciprian).
• Sweden - In autumn '98, a Japanese company was considering Sweden for the site for a new aluminum smelter.
• Mount Holly (USA) - Possibility of a new line being added using Alcoa technology.

• Pechiney to acquire Century's fabricated aluminum businesses - Century Aluminum has decided to sell its fabricating assets and to concentrate on its primary aluminum business. It is looking at acquiring primary aluminum facilities in North America, Europe and Australia. Among those perceived as possible targets for Century would be Xstrata's 23% stake in the Mount Holly smelter in the USA, in which Century already holds a 26.7% stake, and Alcoa holds the controlling interest. (MetalBulletin) A definitive agreement has been signed for Pechiney's acquisition of Century's two fabricated aluminum businesses (rolling mill in Ravenswood, West Virginia, and a cast plate unit in Vernon, California) for US$248 million. (BusinessWire, MetalBulletin, AMM)
• Pechiney considers expanding Tomago share - Pechiney has expressed interest in buying CSR's 36% stake in Tomago. Pechiney has a pre-emptive right to CSR's share when it decides to sell. (MetalBulletin)
• Hoogovens mergers - On June 7, the merger between Koninklijke-Hoogovens and British Steel was announced, officially forming British-Steel-Koninklijke-Hoogovens (BSKH). The new group will retain Hoogovens smelters, extrusion plants and rolling mills alongside a merged steel production. Not only will Hoogovens Aluminium be retained by the group, there is the possibility that it could be expanded. There has been speculation that the Hoogovens aluminum operations may be acquired by Pechiney, Glencore or Alusuisse-Lonza. (MetalBulletin) The European Commission approved the merger in mid-July. (MetalBulletin) Hoogovens' central works council stated that it is in favor of the proposed merger with British Steel. It also stated that aluminum operations should be expanded. (AMM) Both companies expect the merger to be completed in October. (MetalBulletin) Hoogovens has also announced plans to form a 50:50 joint venture between Hoogovens Technical Services and Danieli, forming Danieli-HTS. The jv would offer a variety of engineering and contracting services to the steel and aluminum industries. (MetalBulletin) Former British Steel chairman Sir Bob Scholey has indicated his approval of the proposed BS-Hoogovens merger. (MetalBulletin)
• Norway looks to increase stake in Norsk Hydro - Uncomfortable with the idea of the government's majority stake in Norsk Hydro being diluted after Norsk Hydro's planned share offer for Saga Petroleum, the Norwegian Oil and Energy Minister said that the government may consider buying shares in Hydro. (AMM)
• Hydro buys stake in Alunorte - Hydro Aluminium has agreed to pay $200m for a 25.3% stake in the Alunorte alumina refinery in Brazil. An MoU between the two companies could lead to an increase of refinery capacity by 800ktpy to 2.3 million tpy. The expansion would require an added investment of $300m, of which Hydro agreed to pay half, and is scheduled to take place within the next 24 months. The extra production will be taken up entirely by Norsk Hydro. (AMM, MetalBulletin)
• VA Tech signs letter of intent to buy Kvaerner - VA Tech has signed a preliminary letter of intent to buy Kvaerner's Metals Equipment design and supply business. The deal does not include Kvaerner's UK manufacturing facilities, which will be sold separately. In Stockton, VA Tech is buying the iron and steel division. Danieli and Techint could still be interested in the remaining companies. (MetalBulletin)
• Columbia Falls Aluminum – Glencore announced the agreement to purchase Columbia Falls May 21 without disclosing the terms. Final closing was expected to take place in early June, pending the transfer of necessary permits and regulatory approvals. Glencore is expected to honor the existing Pechiney tolling contract but not to renew it. (Platt'sMtlWk) (A panelist pointed out that there is no tolling contract with Pechiney but with Hydro Aluminium. (EnalPanel))
• IDC stake in Billiton - IDC has reduced its stake in Billiton to 8.96%. (MetalBulletin)

• Strike at Kaiser Aluminum Smelters - The strike that began on September 30, 1998, at five Kaiser Aluminum USA locations (including the Tacoma and Mead smelters) continued into August ’99. (MetalBulletin, AMM) On July 15, Kaiser indicated that the National Labor Relations Board (NLRB) intended to recommend dismissal of all charges of unfair labor practices brought against the company by the USW. On July 19, Kaiser submitted a proposal to the USW and the Federal Mediation & Conciliation Service which included a proposal for a two-week negotiating session beginning August 9. (BusinessWire) Three rounds of talks are scheduled between Kaiser and USW during the month of August. (BusinessWire, AP)
• Southwire versus strikers - Southwire fired 17 USW members who went on strike against NSA more than a year ago. Southwire said the strikers were fired because of "threats and other acts of violence against NSA employees and their families." (Platt'sMtlWk)
• Kitimat strike - After the expiration of a labor contract on July 24, members of the Canadian Autoworkers union went on strike for about four hours. About half the smelter was shut down, but was back in full operation by the next morning. A new three-year contract was agreed upon within a week of the short-lived strike. (MetalBulletin)

• Chinese Aluminum - According to China Metals, 39 new primary aluminum smelters have been built in the past two years. There are now 106 smelters in China, mostly under 30ktpy. 13 smelters were forced to shut down in late ’98 with a total capacity of 260ktpy. (MBM) Twenty-one Chinese aluminum plants are expected to be consolidated into a large aluminum group in the near term. The plants account for 1.1-mil mtpy of aluminum capacity. Small aluminum plants with a capacity of below 10ktpy are expected to shut down gradually, but this process will take some time due to regional protectionism. The Chinese government has plans to restrict new aluminum expansion projects of below 100ktpy in a bid to eliminate the pollution problems associated with small plants. (Platt'sMtlWk)
• Chalco plans face local opposition - Current plans are to consolidate China's largest refineries and smelters into the China Aluminium Co. (Chalco). A policy of shutting down smaller, inefficient smelters (announced in January) has been linked to this plan in the central government's overall aluminum strategy. More than 80% of China's aluminum smelters (111 at last count) have capacities of less than 50 ktpy. In 1998, 12 plants with capacities of less than 30 ktpy were built. (Platt'sMtlWk) Another aspect of the Chalco plan is that smelter development projects, other than those using prebake technology, will be prohibited for three years. (MetalBulletin)
• Guizhou working on casthouse - Guizhou is purchasing equipment for the casthouse from ODT Engineering (Australian licensee of Maerz-Gautschi) and VAW. (AlumToday)

• Where is KrAZ general director? - The general director of KrAZ resurfaced four weeks after disappearing amid charges of corruption. Bykov was in an Austrian clinic recovering from a spinal operation. (AMM) He has been reappointed chairman of Krasnoyarsk. The meeting of shareholders approved the issue of 15m additional shares, aimed at raising $80m worth of investment. (MetalBulletin)
• Sayanogorsk wins appeal - An appeal court in Moscow ruled in favor of SaAZ on June 1, dismissing an earlier ruling in April which declared illegal the issue of shares carried out by SaAZ in 1998 and subsequent government tenders for SaAZ shares. Ownership is now: TWG (14.14%), Sibirsky Aluminy (69.16%), Gavrohe Investments (12.61%). (MetalBulletin)
• Who controls Nikolaev? - Nikolaev general director Vitaly Meshin was replaced by Trans-World Group-linked Nikolay Naboka. Meshin is appealing this decision, but the summer recess of the Ukrainian parliament has delayed a hearing. In the meantime, Naboka has reportedly dismissed the plant's previous management and has halted shipments to Bratsk, Tadaz and Sayanogorsk. (MetalBulletin, Platt'sMtlWk)

• Comalco’s Gladstone Refinery Project - Comalco has given the go-ahead for the final feasibility study for its proposed alumina refinery based at Gladstone. The Queensland government has reached agreement with the Papua New Guinea Pipeline Joint Venture for the supply of gas to a number of Queensland companies, including Comalco. According to Comalco's managing director, it would take at least twelve months before the sponsors of the PNG gas project make firm commitments for the supply of gas. In contrast, copious quantities of gas are already onshore for a possible Malaysia alumina refinery. Comalco is close to finalizing terms for the supply of natural gas and electricity in the short and longer term with Malaysia's national oil company, Petronas, in a joint venture with Shell Malaysia and with the Sarawak Electricity Supply Corp. (MetalBulletin)
• Tiwai Point production is up - The plant produced a record 79kt in the first quarter of 1999, up from 77kt in the final quarter of 1998. Improvements included better quality carbon anodes, a new scrubber to recycle carbon and clean the air, and energy efficiency projects. (Southland Times)
• UK energy tax - The UK energy tax, or "climate change levy", to be introduced by the government in April 2001, could put the country's primary aluminum smelters out of business, according to Tom Campbell, md of Anglesey Aluminium Metal Ltd. He stated that the levy would account for an increase in costs at the Holyhead smelter of 12% of the selling price. (MetalBulletin)
• NSA Sale- Southwire announced in April that it intends to sell Copper Division Southwire (CDS) and NSA, its primary aluminum smelter in Hawesville, Kentucky, although a sale is not expected to go through if Southwire does not get the right price. Michigan Avenue Partners has expressed interest in the sale. Lazard Freres & Co. has been hired as financial advisor. (Platt'sMtlWk, Business Wire) Southwire has entered into confidentiality agreements with prospective buyers, yet to be publicly disclosed, of its copper refinery, copper rod plant and NSA. (Platt'sMtlWk) A source close to Southwire said that the company is hoping to secure supplier agreements with whomever acquires the assets. Assistant VP Eddie Adams and gm Jeff Herrin have been reassigned from NSA to other parts of Southwire's business. (MetalBulletin) Southwire has split the top executive duties and eliminated 258 positions in an effort to streamline management and lower overhead costs. The majority of the eliminated jobs are in sales, general and administrative positions. (AMM)
• BPA Sued - Aluminum producers in the US Pacific Northwest have asked the US Circuit Court of Appeals to review BPA's sales strategy. They anticipate not having access to enough electricity and want to begin negotiations now for contracts to take effect in 2001. (Platt'sMtlWk) The companies filing suit feel that the BPA is not doing enough to ensure that power will be available. (EnalPanel) As of mid-June, the BPA had not reached an agreement with smelters in the Northwestern USA regarding power contracts covering 2001 to 2006. The BPA final offer was 1,500 MW at an average price of US$23.50/MWh. The US Energy Secretary has supported the smelters' efforts to receive a significant allotment of low-cost power from the BPA as a result of lobbying by the USW union. The union has warned that efforts to charge market rates to smelters in the region could have the same effect that such efforts had in the Tennessee Valley a decade ago. In that case, nine aluminum plants closed. Regional utilities which buy power from the BPA for the residential and small-business markets say that their customers would be charged higher rates, especially during times of lower aluminum prices. (EnalPanel) Most of the aluminum producers in the US northwest have signed letters of agreement to purchase a total of 1,170MW of firm power at 23.5 mils/kWh, or at a variable rate tied to aluminum prices, in five-year contracts that start Oct. 1, 2001. Remaining energy requirements will be purchased from the market. The new fixed-price contracts will be take-or-pay. (Platt'sMtlWk) Environmental groups do not favor the agreement, believing funding for protection of fish and wildlife will be cut. Other regional utilities believe residential customers will not have less access to low-cost power. (EnalPanel) The Oregonian (a newspaper out of Portland, Oregon) has estimated that annual costs for efforts to save fish in the northwest are approaching $1 billion, without much success. (Oregonian 06/28/99)
• CVG privatization - After extensive talk of new privatization plans, including the decision to split up CVG's aluminum plants and deal with them separately, Venezuela has again put off the starting date for another effort to sell a controlling interest in its aluminum industry, possibly until some time in 2001. (AMM) CVG has reduced its operating costs in the past ten months. Venalum is producing an average profit of $151/mt of raw aluminum produced. Alcasa has reduced its operating deficit from around $700/mt during most of 1997 and 1998 to a present loss of $151/mt of aluminum produced. The CVG complex has reduced its payroll, dropping 839 persons in 1998 and 140 workers in the first quarter of 1999. (Platt'sMtlWk) The closure of the Pivensa aluminum mini-mill at Puerto Ordaz leaves Venalum without a sizable convenient customer, as well as cash-pinched. Pivensa's debt to Venalum is said to be about $25million. (AMM)
• Podgorica (ex-Titograd) - Podgorica is operating at its target capacity despite a brief interruption to raw materials deliveries. The smelter's production is expected to reach 95kt to 100kt this year. (Platt'sMtlWk)