2 Min Read
Jan 3 (Reuters) - Alcoa Corp said it would permanently close its Suralco alumina refinery and bauxite mines in Suriname, more than a year after stopping production at the plant.
The company said on Tuesday it would record $90 million in charges in the fourth quarter of 2016 related to the restructuring.
Alcoa stopped production at the Suralco refinery, which has an annual refining capacity of 2.2 million metric tons, in 2015 due to dwindling bauxite ore supply. (reut.rs/2hPHOJH)
Suralco is part of the Alcoa World Alumina and Chemicals (AWAC) group of companies owned 60 percent by Alcoa and 40 percent by Alumina Limited.
The aluminum producer said it was in talks with the Suriname government regarding Suralco's remaining activities in the country.
Alcoa also said it would record a $31 million non-cash, after-tax charge associated with its interests in a Western Australia gas field.
The total impact of the charges is estimated to be 66 cents per share, the company said.
Alcoa said a power outage at the Portland Aluminum smelter in Victoria, Australia is not expected to have a significant unfavorable impact on fourth-quarter results.
The smelter was hit when a power interconnector between the states of Victoria and South Australia went down on Dec. 1, knocking out power to both of the plant's potlines for about five-and-a-half hours. (Reporting by Vishaka George in Bengaluru; Editing by Sriraj Kalluvila)