Alcoa To Curtail Remaining Suralco Refining Capacity - Quick Facts

(RTTNews) - Lightweight metals leader Alcoa, Inc. (AA) announced the curtailment of Suralco's remaining 887,000 metric tons per year of alumina refining capacity as discussions continue with the Government of Suriname on preserving the country's bauxite and refining industry.

The curtailment follows Alcoa's March 2015 announcement to evaluate 2.8 million metric tons of refining capacity for possible curtailment or divestiture.

The refinery is scheduled to be idled by November 30, 2015. The curtailment and ongoing discussions are aligned with Alcoa's strategy to create a globally competitive commodity business.

Discussions between Alcoa and the Government of Suriname began in October 2014 to reach a joint solution for Suralco that has faced expiring bauxite reserves and lacks a long-term energy solution.

The company is expected to incur total restructuring related charges in the second half of 2015 associated with the curtailment between $65 million and $75 million after-tax and non-controlling interest, or $0.05 to $0.06 per share, of which about 50 percent would be recorded in the third quarter. About 80 percent of the charges are non-cash.

Suralco is part of the Alcoa World Alumina and Chemicals group of companies owned 60 percent by Alcoa Inc., and 40 percent by Alumina Ltd.