Alumina says looking into Vietnam refinery venture

MELBOURNE, Aug 22 - Australia's Alumina Ltd. said on Wednesday it was looking into a refinery project in Vietnam, adding that it expects expects aluminium prices to remain high over the long term. Chief Executive John Marlay told reporters that the project would be carried out through the Alcoa World Alumina and Chemicals (AWAC) joint venture, in which it is a partner with Alcoa Inc. AA.N. The project would be operated jointly with a Vietnamese company. Marlay earlier told a business lunch that several factors supported continued high prices for aluminium. He said higher raw material costs, a tight supply chain and higher structural costs were driving "a new cost environment". "In our view, many of these factors are structural, rather than cyclical, for the aluminium industry," Marlay said. The AWAC joint venture produces alumina from bauxite, with Alcoa owning 60 percent of AWAC and Alumina the remaining 40 percent. Marlay while said Alumina would not rule out making acquisitions, its primary growth would be through organic opportunities. He declined to comment on whether Alumina itself had received any informal approaches. "From our perspective, it's business as usual," he said. Analysts have said recently that Alcoa was a potential takeover target in the fallout from industry consolidation after Alcan Inc. AL.TO fought off a hostile bid from Alcoa by agreeing to a friendly deal with Rio Tinto RIO.L.