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Category: Manufacturing / Electricity Energy and Utilities

Alcoa curtails production at Portland smelter

Friday, 2 Dec 2016 05:39:17 | Bridget Judd

Alcoa says there will be no impact on the workforce as a result of the power outage. (ABC News: Bridget Judd)

Alcoa has curtailed production at its Portland smelter due to a power failure that browned out about 200,000 properties in South Australia yesterday.

A fault on the Victorian transmission network in the early hours of yesterday morning cut power to the smelter's potlines for more than five hours.

As a result, Alcoa has curtailed one potline to ensure the safety of people inside the plant.

"Efforts are focused on maintaining production in the smelter's second potline," the company said in a statement.

"It is too early to speculate on the full impact of the power outage, or on how long it may take to restore normal operations."

Victorian Minister for Industry and Employment Wade Noonan said he had been assured there would be no impact on the Alcoa workforce as a result of the outage.

"The Government is in ongoing contact with Alcoa to determine the severity and potential impacts of the outage, but also to offer our support as well," he said.

"From a government point of view we will remain in full contact with Alcoa to understand what the impact will be on operations.

"[But] they have indicated to the Government that there will be no impact on their workforce."

It follows mounting uncertainty around the facility's future, after the Victorian Government refused to renew a lucrative, 20-year power subsidy that expired on October 31.

Alcoa has warned of a climate of escalating electricity prices as it seeks to secure a new power agreement with AGL Loy Yang.

Curtailment adds to uncertainty in community

The standstill is a another blow for the coastal community of Portland, where Alcoa indirectly employs more than 2,000 people.

Glenelg Shire mayor Anita Rank said the company had assured her it was working around the clock to restore power.

"Council is aware of the uncertainty that this event is causing employees and the Portland community, but we remain optimistic that this problem can be resolved promptly," she said.

"Portland Aluminium is Victoria's single largest exporter. It is paramount that business can return to normal as soon as possible."

Investigation into outage underway

South West Coast MP Roma Britnell said aluminium in production at the time of the blackout had solidified, and it was the first time in the plant's 30 year history that power had failed.

"Its cause must be fully investigated and the State Government must help Alcoa get the plant back into full operation," she said.

"Any damage to the pots is the biggest concern. At a time when Alcoa is facing already-thin profit margins, unexpected issues that are out of the company's control that may have caused damage to the plant are of major concern.

"I'm worried about the impact this will have on jobs and the future viability of the plant."

Mr Noonan said an investigation into the incident was underway.

"The transmission lines are operated by SP Ausnet, and it's left then to the Australian Energy Market Operator to determine why the transmission failure occurred," he said.

"That's work the operator has already indicated it will start."

AustraliaPlus


 

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