An alumina production drop and a bauxite mining approval have contributed to Alcoa’s mixed fourth quarter and full year 2023 results.
Alumina production dropped one per cent to 2.79 million metric tonnes in the fourth quarter of 2023 (Q4), with alumina third-party shipments also being hit with a five per cent decrease.
When seen from a full year perspective, alumina production decreased 13 per cent annually, primarily due to lower grade bauxite at Alcoa’s Australian and San Ciprián refineries.
Revenue also decreased in 2023, dropping by 15 per cent to $10.6 billion.
However, 2023 was also full of progress for Alcoa with the company receiving approval to continue bauxite mining in Western Australia.
“In the fourth quarter of 2023, we made progress on key challenges, including gaining approval on our Western Australia bauxite mine plans, and we’re continuing to advance operational stability while we work to improve our global asset portfolio,” Alcoa president and chief executive officer William Oplinger said.
“We are building on our positive momentum and implementing actions to drive improved profitability.”
The Western Australian Government issued a conditional exemption for Alcoa under section 6 of the Environmental Protection Act 1986 in December 2023.
The exemption was granted in an effort to protect local jobs and ensure environmental standard compliance .
In January, Alcoa announced that it would curtail production at its Kwinana alumina refinery in WA throughout the year, a decision impacting approximately 1000 employees.
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