European Commission suspends tax breaks for three alumina producers

The European Commission has ordered a suspension to tax breaks for three regional alumina refineries and ordered the companies involved to pay back some of the funds already received.

The three plants affected are Aughinish in Ireland, Eurallumina in Italy and Gardanne in France. The latter is owned by Canada's Alcan. Swiss trade house Glencore owns the Irish one and operates the Italian one as a joint venture with RusAl.

The commission said the three countries gave the alumina operators tax exemptions from heavy fuel duties in return for environmental agreements. However, such agreements have not been reached and the Commission is now demanding that some 20% of the tax break received since the start of 2004 be repaid. Any further tax-breaks are suspended in their entirety until payment has been received.