Enter your email to read this article
Read news on any topic, in one place, from publishers like The Economist, FT, Bloomberg and more.

Australia's AGL vows to try to keep aluminium smelter customers open

FILE PHOTO:The logo of AGL Energy Ltd, Australia's no.2 power retailer, adorns the building of their head office in Sydney, Australia, February 8, 2017. Picture taken February 8, 2017. REUTERS/David Gray

MELBOURNE (Reuters) - AGL Energy <AGL.AX>, Australia's largest power producer, said on Wednesday it is working hard to ensure its two biggest single customers, the Portland and Tomago aluminium smelters, remain open.

"We will work as a good citizen to do everything we can to keep those smelters going," AGL Chief Executive Brett Redman told analysts at an investor briefing.

Portland smelter operator Alcoa Inc <AA.N> and Tomago co-owner Rio Tinto <RIO.AX><RIO.L> have both flagged that their smelting operations are struggling with low aluminium prices and high alumina input costs.

Soaring power prices have hit Tomago as well, while Portland has survived with the help of subsidies from the state of Victoria and the Australian government through June 2021.

(Reporting by Sonali Paul; Editing by Himani Sarkar)

Related Stories
Australia's AGL agrees 15-year battery power supply deal with Maoneng
(Reuters) - Australia's AGL Energy Ltd AGL.AX has agreed a 15-year deal to buy battery power from Maoneng Group to ensure supply and pricing security during peak periods, the companies said on Wednesday.
From analysis to the latest developments in health, read the most diverse news in one place.
Rio Tinto flags higher costs, cloudy Australian aluminium future
MELBOURNE (Reuters) - Rio Tinto RIO.AX on Thursday flagged higher costs as it replaces aging infrastructure and boosts iron ore production, and also raised questions over the future of its Australian aluminium business.
France's Engie looks to set up renewables fund in Australia
MELBOURNE (Reuters) - French energy company Engie ENGIE.PA plans to set up a renewable energy investment fund in Australia to speed up investment in wind and solar farms, its Australian head said on Thursday.
Gavin Evans: Smelter review a wake-up call on energy policy
COMMENT: The review of the Tiwai Point smelter should be a rude awakening for policymakers who seem to think New Zealand's renewable energy bounty is going to give us a free pass in world markets.Politicians from all parties have...
German metal recyclers want to be included in climate change plans
LONDON (Reuters) - German politicians should recognize the value of the domestic metals recycling industry by including its representatives on the planned expert council for climate protection, the local metal traders association said.
One place to find news on any topic, from hundreds of sites.
Australia shares slip, set to snap seven-day winning streak; New Zealand inches up
(Reuters) - Australian shares slipped on Wednesday after a seven-session run of gains, led lower by miners, ahead of domestic inflation data due later in the day.