Alcoa: Apache Force Majeure Could Cost Co At Least $10 Mln

LONDON (Dow Jones)--The cost of running U.S. aluminum producer Alcoa Inc's (AA) bauxite mines and alumina refineries in Western Australia could run to millions of dollars now that Apache Corp. (APA) has declared force majeure on gas supply contracts, Alcoa said Wednesday. While Alcoa has the ability to use alternate sources of power to keep production running, company spokesman Kevin Lowery told Dow Jones Newswires that "there's obviously a cost associated with that." "While it's difficult to give an amount because damage assessment is still underway, it could be at least $10 million," he added. Earlier Wednesday, Apache was forced to close its Varanus Island gas plant off the coast of north west Western Australia state due to a fire caused by a ruptured pipeline. Alcoa's operations in the region are part of its joint venture with Alumina Ltd. (AWC.AU).