Alcoa To Cut Suriname Alumina Refinery Output By 40%

SYDNEY -(Dow Jones)- Alcoa Inc. (AA) will cut production capacity at its Paranam, Suriname alumina refinery by 40% or 870,000 metric tons because of weak market conditions, the U.S.-based aluminum producer said in a statement dated Tuesday. The refinery is part of the Suriname Aluminum Company LLC (Suralco) bauxite and alumina joint venture operation, where 55% stakeholder Alcoa last week reached an agreement to buy out BHP Billiton Ltd.'s (BHP) 45% stake for an undislcosed sum. "For the immediate future...we believe both the country and private industry are best served by deferring further bauxite extraction and alumina production until additional in-country bauxite resources are developed and market conditions for alumina improve," said Peter de Wit, managing director of Suralco. The refinery and mining operations employ 1,150 permanent staff and additional contractors. Alcoa didn't give details of job losses. BHP and Alcoa local subsidiaries have been in a mining and refinery joint venture in Suriname since 1984. The deal is expected to close in June, subject to regulatory approvals.