Alumina (AWC)

Shares / Stock Code

AWC

Stock Exchange / Sharemarket

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A chief supplier of alumina, Alumina mainly operates in the mining of bauxite, refining of alumina and smelting of selected aluminium through AWC or Alcoa World Alumina and Chemicals for which it owns 40% of the company's shares. The 60% of the company's shares is owned by Alumina's partner, the Alcoa. Alumina Limited was listed on the Australia Stock Exchange on the 31st of October 1961. To date, around 10 people are employed in the company. Alumina is in charge of the two aluminum smelters as well as eight alumina refineries owned by Alcoa Alumina and Chemicals (AWAC). A large portion of the alumina manufactured by AWAC is used in the production of aluminum used in buildings, packaging, construction, aerospace and transport. The services Alumina provides are focused on the production of mullite, spinel, tabular aluminas, calcined alumina, smelter-grade alumina, and primary aluminum and alumina chemicals. It also engages in refining alumina.

Alumina holds 40% interest in Alcoa Alumina and Chemicals wihle Alcoa (AAI) owns the other 60%. It serves as the enterprise manager of the international network of the alumina refineries in countries like Brazil, Jamaica, US, Suriname, Spain and in Australia where the company’s headquarters is located. The day-to-day operations of AWAC solely involve Alcoa while Alumina contributes to the strategic-decision making.

The key competitors of the Alumina Limited are Nippon Light Metal Company Ltd., Acan Inc., Norsk Hydro ASA, MAXXAM Inc., Rio Tinto, BHP Billiton, Century Aluminum Company and Kaiser Aluminum Corporation.

Alumina Limited Company History

Established in 2002, Alumina Company was previously called WMC and it has an interest in Alcoa World Aluminum Company for it has other operations which included nickel, fertiliser,uranium/copper projects and other exploration developments, and interests.

The merging of AWAC and Alumina Company helped to meet the high demand of the aluminum in the markets globally. From a low-growth and low-risk strategy, the two company partners helped in increasing the production capacity of aluminum and alumina facilities.

During 2003, AWAC tried to expand their facilities by expanding the alumina refinery projects in Paranam located in Suriname. AWAC applied for upgrade approval from the state government for its Pinjara alumina refinery and began with completion of both projects scheduled in July 2005.

To expand more revenues and in order to produce alumina to Alba, the Alcoa company had an agreement with the government of Bahrain to purchase 26% of Aluminum from an operating smelter company in Bahrain.

Jamalco alumina refinery located in Clarendon, Jamaica is the result of the company’s further expansion. The Jamaican government and AWAC had a legal agreement which took place in 2004. From 50%, AWAC increased its ownership to 70% while the Jamaican government owns the remaining 30%.