Alcoa to Close the Anglesea Power Station
12 May 2015 - 9:00AM
Business Wire
Lightweight metals leader Alcoa (NYSE: AA) today announced that
Alcoa of Australia will permanently close the Anglesea coal mine
and power station on August 31, 2015.
The Anglesea power station previously supplied approximately 40
percent of the power needs for the Point Henry smelter in Geelong,
Victoria. Alcoa said in February 2014 that it would conduct a sales
process for the site, which has been operating as an independent
supplier to the National Electricity Market since the smelter
closed in August 2014. The sales process did not result in a
sale.
“Our key concern now is for our 85 employees who have done a
great job in continuing to run the operation during this period of
uncertainty,” said President Alcoa Refining and Managing Director,
Alcoa of Australia, Alan Cransberg. “Alcoa has been a proud member
of the Anglesea community for more than 46 years, and our focus is
in supporting our employees and their families, our contractors,
suppliers and community partners through this transition.”
After closing the Point Henry operations in 2014 Alcoa
contributed AUS$5million into the Geelong Region Innovation and
Investment Fund to support job creation projects that strengthen
and diversify the regional economy and employment base.
“We look forward to the Fund continuing to create new employment
opportunities in the region, and as we did with the Geelong
community, we will be exploring how best to assist our Anglesea
community partners,” Cransberg said.
As a result of the closure, Alcoa expects to record 2015
restructuring-related charges of $30 million to $35 million,
after-tax and non-controlling interest, or $0.02 to $0.03 per
share, of which approximately 80 percent would be recorded in the
second quarter. Alcoa’s free cash flow target for 2015 of $500
million remains unchanged.
About Alcoa of Australia Limited
Alcoa of Australia Limited is 60 percent owned by Alcoa Inc. and
40 percent owned by Alumina Limited. Alcoa of Australia owns and
operates two bauxite mines and three alumina refineries in Western
Australia, and the Portland Aluminum smelter (holding a 55 percent
share) and Anglesea coal mine and power station in Victoria.
About Alcoa
A global leader in lightweight metals technology, engineering
and manufacturing, Alcoa innovates multi-material solutions that
advance our world. Our technologies enhance transportation, from
automotive and commercial transport to air and space travel, and
improve industrial and consumer electronics products. We enable
smart buildings, sustainable food and beverage packaging,
high-performance defense vehicles across air, land and sea, deeper
oil and gas drilling and more efficient power generation. We
pioneered the aluminum industry over 125 years ago, and today, our
approximately 59,000 people in 30 countries deliver value-add
products made of titanium, nickel and aluminum, and produce
best-in-class bauxite, alumina and primary aluminum products. For
more information, visit www.alcoa.com, follow @Alcoa on Twitter at
www.twitter.com/Alcoa and follow us on Facebook at
www.facebook.com/Alcoa.
Forward-Looking
Statements
This release contains statements that relate to future events
and expectations and, as such, constitute forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements include those
containing such words as “estimate,” “expect,” “plan,” “should,”
“will,” “would,” or other words of similar meaning. All statements
that reflect Alcoa’s expectations, assumptions or projections about
the future other than statements of historical fact are
forward-looking statements, including, without limitation,
anticipated financial results or operating performance, the
expected timing for completing the closure of the Anglesea coal
mine and power station, statements regarding future employment
opportunities in the region, and statements about Alcoa’s
strategies, objectives, goals, targets, outlook, and business and
financial prospects. Forward-looking statements are subject to a
number of known and unknown risks, uncertainties and other factors
and are not guarantees of future performance. Actual results,
performance or outcomes may differ materially from those expressed
in or implied by those forward-looking statements. Important
factors that could cause Alcoa’s actual results to differ
materially from those expressed or implied in the forward-looking
statements include: (a) the inability to complete the closure
of the Anglesea coal mine and power station in Australia as planned
or within the time period anticipated, whether due to changes in
regulations, technology, or other factors; (b) changes in
preliminary accounting estimates due to the significant judgments
and assumptions required; and (c) the other risk factors
discussed in Alcoa’s Form 10-K for the year ended December 31,
2014, as well as other reports filed with the Securities and
Exchange Commission. Alcoa disclaims any intention or obligation to
update publicly any forward-looking statements, whether in response
to new information, future events or otherwise, except as required
by applicable law.
AlcoaInvestorsNahla Azmy,
+1-212-836-2674Nahla.Azmy@alcoa.comorMediaSonya Elam Harden,
+1-864-836-2078Sonya.Harden@alcoa.comorAustralia:Brian Doy,
+0404-800-690Brian.Doy@alcoa.com.au
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