The AWAC joint venture was formed in 1994 and our partnership with Alcoa dates back to 1961.
Alumina Limited is primarily focused on investing in long-life, low cost bauxite and alumina assets. Alumina does this currently through the AWAC joint venture. Alumina Limited is a leading Australian resource company with a specific focus on alumina, the feedstock for aluminium smelting.
Alumina Limited is one of Australia’s top 100 companies, delivering strong returns, consistent performance and ongoing growth.
AWAC is also has a 25.1% interest in a bauxite mine and alumina refinery joint venture with Ma’aden in Saudi Arabia and an equity interest in non-AWAC operated bauxite mine at CBG (Guinea).
It is a low-cost producer and many of its operations are positioned in the lower-cost quartiles.
The demerger has enabled investors to benefit directly from the full value of the alumina and aluminium business.
Alumina Limited is a leading Australian company listed on the Australian Stock Exchange (ASX) and the US Over-the-Counter (OTC) market. We invest worldwide in bauxite mining, alumina refining and selected aluminium smelting operations through our 40 per cent ownership of Alcoa World Alumina and Chemicals (AWAC), the world’s largest alumina business. Our partner, Alcoa, owns the remaining 60 per cent of AWAC, and is the manager. The AWAC joint venture was formed in 1994 and our partnership with Alcoa dates back to 1961.
Alcoa World Alumina and Chemicals (AWAC) is the one of the world’s largest producers of alumina and is a global joint venture between Alumina Limited and Alcoa. Alumina owns 40 per cent of AWAC, our joint venturer Alcoa is the enterprise manager and owns 60 per cent. AWAC global interests include 5 alumina refineries, 3 bauxite mines and 1 aluminium smelter. AWAC also has a 25.1% interest in a alumina refinery and bauxite mine developed with Ma’aden in Saudi Arabia that was commissioned in 2015 and also an equity interest in a bauxite mine in Guinea.
Alumina Limited commenced as a standalone entity on 11 December 2002 when WMC Limited’s alumina assets were demerged from its nickel, copper and fertilizer businesses.
The origins of the Alcoa Worldwide Alumina and Chemicals (AWAC) partnership between Alcoa and WMC Limited (now Alumina Limited) began in the early 1960’s following the exploration and discovery of bauxite deposits and other resources by WMC Limited and two other Australian companies. The Aluminium Company of America (Alcoa) was invited to join the project to provide technology, aluminium expertise and finance. The venture formed Alcoa of Australia Ltd, an integrated aluminium company, in 1961 with WMC Limited holding a 20% interest and Alcoa a 51% interest.
Over the following years the venture grew to include refineries and smelter interests as the partners sought to take opportunities to expand the business. By 1990, WMC Limited’s interests in Alcoa of Australia had grown to 48.25% through acquiring the minority interests of other participants, other than Alcoa.
In July 1994, WMC decided to expand this interest as a worldwide bauxite, alumina and alumina-based chemicals enterprise.
WMC Limited and Alcoa combined their respective bauxite, alumina and alumina-based chemicals businesses and investments and some selected smelting operations to create Alcoa World Alumina and Chemicals (AWAC) in January 1995.
Alumina Limited is listed on the Australian Securities Exchange (ASX) and also the OTC Markets in the US as an American Depositary Receipts (ADRs). Alumina’s ASX issuer code is AWC and the OTC ticker code is AWCMY. Each ADR is the equivalent of 4 ordinary shares in Alumina Limited. Alumina’s stock commenced trading on 11 December 2002.
Alumina Limited does have a Dividend Reinvestment Plan (DRP). The Plan is currently suspended
Alumina Limited’s financial year concludes on 31 December. Full Year results are generally released around mid-February. Half Year results are generally released in mid-August.
Alumina’s key strategy is, through AWAC:
At Alumina Limited we have core values and supporting principles that guide the way we do things at Alumina. Those values underpin our policies, business practices, standards and corporate governance. The values have been adopted by the directors, management and staff of Alumina Limited and translate into our Code of Conduct.
Since 31 December 2005 Alumina Limited’s financial statements have been prepared in accordance with Australian equivalents to International Financial Reporting Standards (A-IFRS), other authoritative pronouncements of the Australian Accounting Standards Board, Urgent Issues Group Interpretations and the Corporations Act 2001. Until to 31 December 2004 Alumina Limited’s financial statements had been prepared in accordance with previous Australian Generally Accepted Accounting Principles.
Generally, the Board intends, on an annual basis, to distribute cash from operations after serving debt and corporate cost commitments have been met. The Board will also consider the capital structure of Alumina Limited, the capital requirements for the AWAC business and market conditions. Dividends will be fully franked for the forseeable future.