Latest news with #smelter
Reuters
22-05-2025
- Business
- Reuters
US aluminium smelters vie with Big Tech for scarce power
LONDON, May 22 (Reuters) - It's forty-five years since anyone built a primary aluminium smelter in the United States. When Alumax fired up the Mt Holly plant in South Carolina in 1980, the country's tally of smelters rose to 33 with combined annual capacity of almost five million metric tons of aluminium. Today that number has shrunk to six. Two are fully curtailed. Two, including Mt Holly, are running below capacity. Annual production has shrunk to 700,000 tons. Emirates Global Aluminium hopes to reverse the tide with a new plant, opens new tab in Oklahoma. It joins Century Aluminum (CENX.O), opens new tab, which was awarded federal funding, opens new tab by the Joe Biden administration for a new "green" low-carbon smelter somewhere in the Ohio/Mississippi River Basins. Both projects face the same dilemma. High power prices killed off most of the country's smelters and a lack of competitively priced power has deterred anyone from building one since the last century. It doesn't help that any smelter project must compete for electricity with tech companies willing to pay almost anything for their power-hungry data centres. Aluminium compounds have been around since ancient times, used by the Egyptians as a dye-fixer and the Persians for pottery. But it wasn't until the early 19th century that anyone worked out how to refine bauxite into metal and even then it remained something of an expensive curiosity. Global production was just two tons in 1869 and aluminium was more valuable, opens new tab than gold. The solution, discovered independently by Charles Martin Hall in the United States and Paul Héroult in France, was to use electrolysis on an intermediate product called alumina. The Hall-Héroult process, opens new tab is still the dominant technology in producing a metal that is now ubiquitous in buildings, vehicles and consumer packaging. And it needs a lot of uninterrupted power. It takes 14,821 kilowatt-hours of electricity to make a ton of aluminium, according to the U.S. Aluminum Association. A modern-size smelter with annual capacity of 750,000 tons needs more power than a city the size of Boston. That's a big challenge for any primary aluminium producer in the United States given the Energy Information Administration estimates that the country will be facing an energy deficit of 31 million megawatt-hours by 2030 and 48 million by 2035. The power is available right now to build a new U.S. aluminium smelter, according to Matt Aboud, Senior Vice President of Strategy & Business Development at Century Aluminum. The problem, he explained at last week's CRU Aluminium Conference in London, is that it isn't available at a fixed long-term price, which is what a smelter needs to lock in its profitability and pay back construction costs that will run into the billions of dollars. The Aluminum Association estimates that a new U.S. smelter would need a minimum 20-year power contract at a price of not more than $40 per MWh to be viable at current aluminium prices. Any smelter project is in a race with Big Tech, which is on the same hunt for energy to power its next-generation artificial intelligence data centres. And tech companies "have no limit on what they are prepared to pay for dependable 24/7 electricity", according to the Aluminum Association's just-released report, opens new tab on rebuilding U.S. supply chain resilience. The Association estimates Microsoft (MSFT.O), opens new tab conceded $115 per MWh in its deal with Constellation Energy (CEG.O), opens new tab to restart the Three Mile Island nuclear plant in Pennsylvania. Even reactivating moth-balled aluminium lines will be challenging given the 2023 price of power averaged $73.42 per MWh in the four U.S. states hosting smelters with idle capacity, it warned. EGA hasn't yet signed a power deal for its proposed 600,000-ton-per-year smelter in Oklahoma. Final go-ahead is contingent on an agreed "power solution framework based on a special rate offer from the Public Service Company of Oklahoma," according to the Memorandum of Understanding, opens new tab signed by state governor Kevin Stitt. Oklahoma has the advantage of producing almost three times more energy than it consumes, according to the EIA, opens new tab. Around half of the state's electricity generation was sourced from natural gas in 2023, with wind power accounting for another 42%. Indeed, Oklahoma is the third largest wind power state after Texas and Iowa. Harnessing intermittent wind power to run an aluminium smelter, however, would take a massive amount of grid storage capacity, meaning there would likely have to be some gas in the energy mix for any new smelter. That's better than coal but not ideal in an industry which is collectively trying to lower its carbon footprint to produce "green" aluminium. Even assuming EGA can get a viable long-term power deal, the $4 billion project will only pour its first hot metal some time near the end of the decade. By which time, 14 new re-melt facilities will have started up, lifting U.S. demand for recyclable scrap aluminium to 6.5 million tons, according to the Aluminum Association's projections. Recycling requires much less power, typically around 5% of that required to produce virgin metal, and comes at a much lower capital cost. The main constraint on U.S. secondary production growth is a shortage of "scrap". The country has an astonishingly low beverage can recycling rate of just 43% and throws away the equivalent of 800,000 tons of aluminium every year. It also exports huge amounts of end-of-life aluminium scrap. Exports rose by 17% year-on-year to 2.4 million tons in 2024, much of it destined for China, which is increasingly hungry for recyclable raw material. Capturing more recyclable material at home and sending less of it abroad would be a complementary strategy for reducing import dependency of a metal classified as critical by every U.S. government agency. It's also likely to be faster and cheaper than waiting to see if either EGA or Century can win the battle with Big Tech for enough power to build a new primary smelter. The opinions expressed here are those of the author, a columnist for Reuters.
Reuters
22-05-2025
- Business
- Reuters
Freeport Indonesia says Manyar smelter resumes operations after fire
JAKARTA, May 22 (Reuters) - Copper miner Freeport Indonesia said its $3.7 billion Manyar smelter in East Java has resumed operations earlier than anticipated after a fire took it offline last year, and is expected to produce copper cathode by the fourth week of June. CEO Tony Wenas said in a statement on Thursday the plant was expected to reach full production capacity by December. A fire damaged the plant last October. Wenas said production had been expected to resume in June, but the repairs were completed ahead of schedule. In March, the Indonesian government gave Freeport Indonesia, a unit of Freeport-McMoRan Inc (FCX.N), opens new tab, a six-month permit to export 1.27 million metric tons of copper concentrate, relaxing a country-wide export ban on unprocessed copper because the company was unable to use the smelter.
ABC News
19-05-2025
- Business
- ABC News
George Town locals are worried about their region's future as smelter limits operations
Liberty Bell Bay, near the northern Tasmanian community of George Town, is Australia's only manganese alloy smelter, and a major employer in the region. On Monday, the company, which has more than 250 full-time workers, announced it would "enter a period of limited operations". Tasmanian Premier Jeremy Rockliff has called it a period of "care and maintenance". It remains unclear how long it will last. Global ore supply issues, volatile prices, and extensive US tariffs have all been cited as reasons for the decision. And while the company has said there would not be any forced redundancies, locals say any jobs lost will be a hit to the region. Michael Wuksta has lived in George Town for almost three decades. He said Monday's announcement was not the first time the region had braced for the smelter's closure. "But it might be the last time," Mr Wuksta said. In 2019, the smelter's future was in doubt after its former owner, South32, announced it was reviewing its operations, before it was purchased by international company GFG Alliance the following year. Mr Wuksta said if it were to close, it would not be good for the wider community. In February, another GFG-owned entity, the Whyalla steelworks, was forced into administration by the South Australian government due to its failure to pay back its growing debt. The federal government then announced a $2.4 billion joint state-federal support package to protect jobs and ensure the continuation of the steelworks. George Town resident Irene Maynard said the announcement that work would now pause at Liberty Bell Bay had left her surprised. Ms Maynard said employees at the smelter — including her grandson — were upset. "If there's going to be jobs missing, it's going to be pretty bad. "I think the government should step in, but whether they do or not — that's a different thing." Another local, Colin Himmelberger, said the prospect of job losses was scary for the area's future. "And if a couple of hundred people lose their job, it's not going to be very good for the town at all. "It's hard enough to find a job these days without something like this happening. "Where are they going to go?" Mr Rockliff said he understood about 40 Liberty staff would be needed during the care and maintenance phase. "Naturally we're very concerned for the local community, all the employees," he said. In February this year, state-owned energy producer Hydro Tasmania confirmed it had locked in a 10-year power deal to supply electricity to the ferroalloy smelter, which accounts for about 7 per cent of the state's energy usage. Hydro Tasmania's acting chief executive Erin van Maanen at the time said the smelter was "a significant employer in the state" and described the agreement as mutually beneficial. Only a few weeks later, the South Australian government forced Whyalla steelworks into administration. At the time, Tasmanian Greens senator Nick McKim said the federal government should "be prepared to step in and "offer similar assistance" to the state-federal package delivered to Whyalla, should Liberty face the same fate. On Monday, Industry and Innovation Minister Tim Ayres urged Liberty to "provide sufficient support" to keep processing ore, and said he would establish a team within his department to assess the facility's commercial position. Mr Ayres said he would provide the federal and Tasmanian governments with advice over the coming days.
News.com.au
19-05-2025
- Business
- News.com.au
Tasmanian smelter Liberty Bell Bay pauses operations, leaving 250 workers in limbo as governments call for support
A major Tasmanian smelter has paused operations, leaving hundreds of workers in limbo and prompting calls from both state and federal governments for transparency and urgent support. Liberty Bell Bay, located in George Town and owned by British businessman Sanjeev Gupta's GFG Alliance, is Australia's only commercial ferroalloy operation. It produces ferromanganese and silicomanganese and is one of Tasmania's largest industrial energy users. The smelter, which employs more than 250 people, is the latest of Mr Gupta's assets to face turmoil. Earlier this year, the South Australian government forced his Whyalla steelworks into administration, with administrator KordaMentha overseeing debts reportedly around $1 billion, the ABC reports. A spokesperson for Liberty Bell Bay, formerly known as TEMCO, said the facility lost its primary ore supplier after Tropical Cyclone Megan struck in March 2024. 'We are still working through ore supply options at present,' the spokesperson said. 'Price volatility globally and the imposition of tariffs in the US have also impacted operations. 'Due to ongoing challenges with ore supply, Liberty Bell Bay has no option but to enter a period of limited operations.' Premier Jeremy Rockliff described the situation in George Town as 'very concerning'. 'There's a workforce of around 253 FTE (full-time equivalent) and around 30 FTE contractors,' Mr Rockliff said. 'And during this pause there will be 40 people engaged, as I understand it in terms of FTEs, in care and maintenance.' While GFG has said there will be no forced redundancies, the majority of staff are now without work, with the premier warning the operational pause could last 'for the foreseeable future'. Industry Minister Eric Abetz said the state government was 'mobilising support' for affected workers, families and businesses. 'We will respond accordingly with our focus on ensuring the wellbeing of the workers, suppliers, contractors and community impacted by this pause,' Mr Abetz said. Jobs Tasmania has been tasked with co-ordinating support for impacted employees. Federal Industry Minister Tim Ayres also weighed in, calling for 'much more transparency about the state of the business and the decision to halt operations'. 'I urge GFG Alliance to step up and deliver confidence and certainty in the ongoing operations of this facility,' Mr Ayres said. 'They must engage with, and deliver transparency to, the Tasmanian government, staff, unions and the local community about the issues facing the business. 'I have asked my department to establish a rapid assessment team to work with the Tasmanian government to analyse the facility's commercial position comprehensively and to provide both governments with advice over coming days.' Tasmanian Labor Opposition Leader Dean Winter warned of broader economic impacts if the smelter fails to recover. 'This is primarily about those 300 jobs,' Mr Winter said. 'But it's also about all the flow-on impacts of the economy, [and] other major industrials. It's about power prices. It's about the actual Tasmanian power network.' 'If this business falls over, there will be wide-ranging impacts that we all need to be aware of.' Energy expert Marc White from Goanna Energy told the ABC the shutdown could affect Tasmania's energy and gas markets. 'Liberty Bell Bay accounts for around seven per cent of the state's energy consumption,' he said. 'It's one of the state's largest natural gas consumers, meaning the future cost of transporting gas from Victoria to Tasmania could also be impacted.'
Zawya
13-05-2025
- Business
- Zawya
Bahrain: Alba posts $48.2mln Q1 profit, production costs impact
Aluminium Bahrain (Alba), the world's largest aluminium smelter on one site, has reported a profit of BD18.1 million ($48.2 million) for the first quarter of 2025, a drop of 25.9% year-over-year (YoY), versus a profit of BD24.5 million ($65 million) for the same period in 2024. The company reported basic and diluted earnings per share of fils 13 for Q1 2025 versus fils 17 for the same period in 2024. Total comprehensive income for Q1 2025 stood at BD16.8 million versus BD27.7 million for the same period in 2024 – a drop of 39.4% YoY. Gross profit for Q1 2025 was BD50.8 million versus BD 57.3 million for the same period in 2024 - down by 11.3% YoY. With regards to the revenue from contracts with customers, Alba generated BD408.9 million versus BD334.6 million in Q1 2024 – up by 22.2% YoY. Total equity as of 31 March 2025 stood at BD1,902.7 million, down by 1.1%, versus BD1,923.9 million, as of 31 December 2024. Alba's total assets as of 31 March 2025 were BD2,706.9 million versus BD2,673.4 million as of 31 December 2024 – up by 1.25%. Higher LME price (+20% YoY) and higher premiums (+38% YoY) drove strong top-line performance, increased production costs significantly compressed EBITDA resulting in lower bottom-line. Alba's Operational Highlights o Despite market challenges, sales volume reached a healthy 374,809 MT, up by 3% YoY. o Net finished production dipped slightly by 2% YoY to reach 396,866 MT. o Value Added Sales (VAP) averaged 71% of total shipments, marking an increase of 5% YoY [VAP: 265,657 MT in Q1'25 versus 252,772 MT in Q1'24]. o Achieved savings for e-Al Hassalah at US$30.9 million against 2025 Target of US$60 million. LME Price & Premiums o LME Price averaged $2,629/t in Q1 2025 (+20% YoY) and was supported by low global inventories of 459,000 MT (down by 17% YoY) and modest supply growth. However, towards the end of Q1, LME prices started to decline given changes in trade policies. o Premiums: Following the implementation of tariffs in the US, regional premiums surged by 77% YoY. DDP Rotterdam and MJP premiums up by 17% and 153% YoY respectively mainly due to depletion of inventories and geopolitical factors. Commenting on the Company's performance for the first quarter of 2025, the Chairman of Alba's Board of Directors, Khalid Al Rumaihi stated: 'Alba's Q1 2025 results underscore the fundamental strength and operational efficiency of our business. 'While our reported profit reflects the significant impact of higher alumina prices, it's important to recognise that had these prices remained at previous levels, Alba would have undoubtedly achieved an unparalleled financial performance, demonstrating our inherent earnings potential.' Alba's Chief Executive Officer Ali Al Baqali, added: 'Despite the prevailing global geopolitical tensions, Q1 2025 was a landmark period for Alba marked by many firsts: we recorded the highest sales volume, achieved a record Value Added Sales percentage and most importantly, delivered our best safety performance ever in the Company's history. 'These firsts are a direct result of the commitment and operational excellence exhibited by the entire Alba team.' Other highlights of the quarter: Alba celebrates ESG achievements Safety First. Safety Always o Alba wins six National Safety Council Awards for 2025. o Honoured with Prestigious RoSPA Life President Award for Unparalleled Safety Excellence. o Launched plant-wide Safety and Health Campaign 'Be an Albawee in Ramadan'. Empowering People o 56 national employees completed Alba's 'Al Jisr' training & development programme. o Promoted 3 Bahraini talent to key managerial positions. o Celebrated promotion of 2,082 Bahraini employees over the past 5 years and 87% Bahrainisation rate. o 15 exceptional employees, including 7 women, were recognised with the 'Inspirational Employee of the Year' Award. Sustainability & Environmental Stewardship o Embarked on a pilot programme for an electric, battery-powered Aluminium Fluoride (AlF3) feeding vehicle in potlines. o Joined Sea Cargo Charter as its Newest Signatory, Reinforcing Sustainable Shipping Commitment. o Recognised top-performing contracting companies for their top performance in Safety and well-being of workers in Alba. Community Impact o Alba joined Tamkeen's Open Innovation Program to obtain innovative solutions from Bahraini startups and SMEs - first company in Bahrain to join the program. Alba: Safe, Sustainable, Successful Leading the Way: Safety First, Sustainability Always o Aligned with Bahrain's 2060 vision of net-zero emissions, Alba embeds sustainability from raw material sourcing to product delivery, minimising environmental footprint. Operational Excellence and Growth o Exceed 2024 Net Finished Production of 1,622,261 MT. o Achieve e-Al Hassalah 2025 Target of $60 million, progressing towards 2026 Target of $150 million. Capacity Expansion and Efficiency Enhancement o Leverage its industry-leading certifications such as Aluminium Stewardship Initiative (ASI), EcoVadis and Low-Carbon Aluminium EternAlTM to penetrate new markets & boost Value Added Sales (VAP) sales. o Complete solar farm (+6 MW) to enhance green energy utilisation. o Establish Alba Daiki Sustainable Solutions (ADSS) for aluminium dross processing by September 2026. o Complete feasibility study for the New Replacement Line which will replace Reduction Lines 1-3. - Copyright 2024 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (
