Everything about Alcoa World Alumina And Chemicals totally explained
Alcoa World Alumina and Chemicals is a joint venture between
Alumina Limited (40% share) and
Alcoa (60% share) and is abbreviated to AWAC. AWAC's business is the mining of
bauxite, the extraction of alumina (
aluminium oxide) and the smelting of aluminium. It has about 25% of the global alumina market. Alcoa acts as the day-to-day manager.
Australian operations
Alcoa has two
smelters in Victoria, located at
Portland and
Point Henry in
Victoria. It has three
alumina refineries in
Western Australia, located at
Kwinana,
Pinjarra and
Wagerup, and two
bauxite mines at Huntly and Willowdale, also in Western Australia.
Portland smelter
The Portland smelter produces about 360,000 tonnes of aluminium a year, and is Victoria's largest single exporter.
The smelter has been the subject of significant controversy since its inception in 1986. In 1984, under the leadership of
John Cain, the
ALP government signed a joint venture agreement with Alcoa to build an aluminium smelter at Portland. The State Government entered into a deal with Alcoa, which provides for subsidised electricity until 2016, at a price linked to the world price of aluminium. It is estimated that the cost of electricity for the smelter is $14 per MWh (1.4 cents per kWh), and that it has cost the state more than $2 billion over 20 years. March 20 1969 saw Alcoa's own brown coal fired
Anglesea Power Station brought on line at augment the electricity supply from the Victorian grid.
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