Worsley Alumina expansion on track: BHP

BHP Billiton says the expansion of the Worsley Alumina refinery in WA's south west, worth more than $3 billion, is on-track despite financial and commodity market turmoil. Worsley Alumina is a joint venture operation between BHP Billiton, Japan Alumina Associates and Sojitz Alumina, incorporating a bauxite mine, an alumina refinery and port facilities. Alcoa today shelved the proposed expansion of the Wagerup alumina refinery in WA, which was expected to cost between $US3 billion and $US4 billion to construct. "We are on budget and on schedule with the (Worsley) efficiency and growth expansion project," BHP Billiton spokesman Peter Ogden told AAP. The expansion is expected to lift the capacity of the refinery from 3.5 million tonnes per annum to 4.6 million tonnes per annum from the first half of calendar 2011. Mr Ogden said the company continued to target production at "100 per cent capacity" from Worsley. Alcoa has also made a decision to immediately cut aluminium production by 350,000 metric tonnes per year, which follows on from an initial curtailment of 265,000 tonnes last month by the company. This represents 15 per cent of the company's annualised output, or 615,000 tonnes. Rio Tinto, the world's second largest aluminium producer, said a review of all the company's expansion projects was underway and no announcements had been made on future production cuts. "As far as production is concerned we made an announcement on iron ore yesterday, we have not made an announcement on our aluminium product group," Rio Tinto spokeswoman Amanda Buckley told AAP. Source: http://www.wabusinessnews.com.au