Alumina Limited

Company profile

Alumina Limited is a leading Australian resource company with a specific focus on alumina, the feedstock for aluminium smelting.

We own 40% of the world’s largest alumina business, Alcoa World Alumina and Chemicals (AWAC) the recognised industry leader. Our partner in AWAC is Alcoa, who owns the remaining 60% and manages the day-to-day operations. Alcoa is also the world’s largest alumina producer.

This partnership provides investors with a direct investment in the alumina industry.

Alumina Limited is one of Australia’s top 100 companies, delivering strong returns, consistent performance and ongoing growth.

The business

AWAC employs over 5,000 people to mine and refine bauxite, who produce alumina, market the alumina to the world’s aluminium smelters and process a percentage of this alumina to produce aluminium metal.

AWAC has a global network of mines, refineries in Australia, the United States, Guinea, Suriname (closed January 2017), Brazil and Spain and also an interest in a smelter in Victoria Australia. AWAC is also has a 25.1% interest in a bauxite mine and alumina refinery joint venture with Ma'aden in Saudi Arabia.

It is a low-cost producer and many of its operations are positioned in the lower-cost quartiles.

Background

Alumina Limited was created on 11 December 2002 when WMC Limited’s alumina assets were demerged from the nickel, copper and fertilizer businesses (WMC Resources Limited).

The demerger has enabled investors to benefit directly from the full value of the alumina and aluminium business.

Purpose and objectives

Alumina Limited has a small and focused management team. Their purpose is to deliver value to shareholders through:

  • strategic participation in the AWAC business with Alcoa
  • maintaining AWAC’s position as market leader
  • paying substantial dividends to shareholders (with 100% of fully franked dividends received from Alcoa of Australia to be distributed as far as practicable)
  • growing AWAC through planned and sustainable expansion
  • ensuring the value of the AWAC business is understood by the market and reflected in our share price.

Facts and figures

Alumina Limited
  • Owns 40% of AWAC’s assets in Australia (known as Alcoa of Australia).
  • Owns 40% of the remaining AWAC assets around the globe.
  • Trades on Australian Securities Exchange and the OTC Market in the United States.
  • Top 100 Australian company (market capitalisation).
  • Has about 50,000 shareholders.
AWAC
  • One of the World’s largest alumina producers.
  • Annual alumina production capacity (2016) = 14.1 million tonnes.
  • Alumina production (2016) = 12.6 million tonnes.
  • Aluminium (AWAC) capacity (2016) = 197,000 tonnes.
  • Annual aluminium production in 2016 for AWAC = 154,000 tonnes.
  • AWAC Employed in 2016 approximately 5,100 people.
  • Operates 7 alumina refineries and 1 aluminium smelter.
  • Owns or has an interest in 6 bauxite mining operations.
  • AWAC has a 25.1% economic interest in a mine and refinery in Saudi Arabia.
  • Owns and runs a shipping operation that transports alumina, aluminium and raw materials around the world.