Since the formation of the Alcoa World Alumina and Chemicals (AWAC) partnership in 1995, AWAC has delivered more than A$3.5 billion in dividends and capital returns to Alumina Limited.
In 2004 and 2005 cash dividends paid to Alumina Limited were lower due to AWAC's cashflow being partially utilised to fund capital expenditure.
AWAC dividend policy
AWAC's dividend policy is governed by the terms of the AWAC Agreements. Under the agreements amended in September 2016 resulting from Alcoa Inc’s separation into Alcoa Corporation (Alumina’s new joint venture partner) and Arconic LLC, Alumina will benefit from enhanced debt funding and distribution policies. The AWAC joint venture will pay a minimum quarterly distribution of 50% of the prior quarter’s net profit of each company comprising the AWAC joint venture, instead of the pre-separation arrangement of payment of an annual dividend equal to 30% of ATOI. Furthermore, any surplus cash (as defined in the Agreements) within certain of the AWAC companies will be distributed on a quarterly basis.
AWAC is the one of the world's largest alumina producers.
AWAC's alumina production capacity at 2017 is approximately 14.1 million tonnes, a reduction from 17.2 million tonnes per year in 2014 due to AWAC's transformation of its asset portfolio to reduce the groups cash cost position on the international cost curve. This was attained by the full curtailment of production at AWAC's Point Comfort refinery in Texas in 2016 and the announced closure in January 2017 of the Suralco refinery in Suriname. AWAC expects to produce and sell approximately 12.7 million tonnes in 2018, subject to market conditions and 164,000 tonnes of aluminium metal.