Columbia Falls to run half a potline through Sept

NEW YORK, Aug 20 (Reuters) - Columbia Falls Aluminum Co, a U.S. primary aluminum producer, will continue to run half of a potline at its smelter in Montana at least through Sept. 30 when its power agreement expires, a company representative said on Wednesday. Owned by Swiss commodity trading company Glencore International AG, the Columbia Falls smelter has five potlines and total operating capacity of 180,000 tonnes per year. It is currently producing about 18,000 tonnes per year. "We have word that we are going to continue running through Sept. 30, the end of the current federal fiscal year. In the meantime, we are negotiating with Bonneville for a longer-term power contract," the representative said. Columbia Falls' operating rate also depends on the pace of global aluminum demand, but its ability to negotiate a favorable power contract with the Bonneville Power Administration in Portland, Oregon, is a more immediate concern. "A lot is contingent on what happens with the Bonneville power agreement," the representative said about whether and how much Columbia Falls will continue producing. The smelter had been set to shutdown, but when aluminum prices rallied at the end of July, the representative said, the aluminum smelter benefited and was able to continue producing. Aluminum companies around the world have been struggling since last fall when prices took a steep dive amid the global recession and depressed demand for aluminum. Many producers have been operating below cost. A year ago, London Metal Exchange benchmark aluminum tumbled off the all-time high reached at $3,380 a tonne, dropping to a 7-1/2 year low in March when global recession drastically cut demand for the metal. Since the end of July, aluminum prices surged to a new plateau, with levels reaching highs dating back to last November earlier this month. "We trade it as a commodity. So whatever effect that has on the price we realize that whether it's up or down. We're the same as everyone else on that," the representative said.