5 months ago
33
Higher metal prices benefited Jamalco which returned to profit in the March quarter, parent company Century Aluminum has reported.
“Production at Jamalco also improved through the first quarter, and I’m pleased to say the refinery returned to profitability in March. Of course, the team is not resting on this achievement, and we plan to continue to drive additional efficiencies and operational improvement through the balance of the year,” said Century Aluminum Company President Jesse Gary in an earnings call after the release of the American company’s results.
The size of the Jamaican refinery’s sales revenue and profit was not disclosed.
Since the start of the year, however, alumina prices have risen by one-fifth to US$415 per tonne, which implies improved revenue for Jamalco.
“In rising alumina markets like these, we can see that most clearly, the strategic value of our Jamalco acquisition and the captive supply of high-quality alumina and bauxite that it now provides for our smelters,” said Gary. “Combined with our long-term commercial contracts, the Jamalco acquisition makes us roughly net neutral to APAI – alumina pricing as a company.”
Last year, Century acquired 55 per cent of Jamalco from Hong Kong-based Noble Group. The Government of Jamaica continues to own the other 45 per cent through Clarendon Alumina Partners.
According to a recent assessment by the World Bank, alumina prices have been swayed by trade restrictions, such as the recent ban on Russian-origin metals at major Western commodity exchanges. The restrictions have affected aluminium and copper. Century added that disruptions at alumina plants in India have also impacted supplies.
In January, alumina prices on the London Metal Exchange were at about US$330, but jumped to US$365 by March and continued along a northward trajectory to the current price of US$415, according to LME.com.
Century acquired Jamalco last May for US$1 in a bargain purchase of the asset that had suffered fire damage and was indebted. Its final assessment of the gain booked from the acquisition amounted to US$245 million, adjusted down from US$273 million in the December quarter, but more than double its earlier estimates of US$103 million in mid-2023.
Century announced in February that it intends to spend up to US$15 million on capital projects at Jamalco this year. The investments aim to lift production from about 80 per cent to full capacity of 1.4 million tonnes.
English (US) ·