Alcoa says explosion hurts Australia venture

NEW YORK -- An Australian joint venture of aluminum maker Alcoa Inc. said Tuesday its alumina supply contracts will be disrupted due to an explosion. The company declared a "force majeure" -- a contractual clause absolving a supplier for delivery delays beyond its control -- because of an explosion at its supplier Apache Energy's Varanus Island facility, which disrupted gas supply at its Western Australia facilities. Alcoa of Australia is part of Alcoa World Alumina and Chemicals, which is 60-percent owned by Alcoa Inc. and 40-percent owned by Alumina Ltd. Alcoa will take a charge of 2 cents or 3 cents per share in its second quarter because of the explosion, which took place on June 3. Alcoa of Australia is still receiving gas from its other supplier, North West Shelf Gas. The full extent to which production of alumina -- a compound of aluminum and oxygen with a variety of uses -- will be affected is uncertain, Alcoa said. Shares of Alcoa rose 55 cents to close at $42.72. Source: AP