Portland Aluminium Smelter Joint Venture
In Portland, Victoria, Australia, the Portland Aluminium Smelter utilizes Alcoa Corporation‘s unique aluminum smelting and flue gas emission control technologies. It has been operating in good condition for 39 years and was once one of the world's most technologically advanced and lowest-cost aluminum plants. In 2022, it enhanced production, increasing annual aluminum ingot output from 300,000 tons to 360,000 tons. Its production capacity, which dropped because of an anode incident in 2023, is expected to restore by 2026.
CITIC Resources holds 22.5% participating interest in the electrolytic aluminum smelter joint venture. The smelter purchases alumina and produces aluminum ingots.
In 2024, the Portland Aluminium Smelter made significant progress in capacity recovery with demand for aluminum driven by new energy vehicles.
The company made steady progress in facilitating the capacity recovery of Portland Aluminium Smelter. Through strategic measures such as entering into a new hedging agreement with independent electricity suppliers, the company capitalized on the favorable market conditions resulting from the rebound in aluminium prices.
Between 2013 and 2016, CITIC Group and CITIC Resources began to acquire and subsequently increase their holdings in AWC. Their combined shareholding gradually reached 19.06%, becoming the largest shareholder.
In 2020, due to non-participation in the equity dividend plan, CITIC Resources' shareholding dropped to 9.61%. The company's shareholding decreased to 18.92%, making it the second-largest shareholder.
AWC：AWC is an alumina limited company listed on the Australian Stock Exchange, holding 40% interest in AWAC Company. AWAC's annual bauxite mining volume is approximately 40 million tons, with alumina production of about 10.3 million tons. This accounts for 59% of Australia's total alumina production and 8% of the world total.
Transaction Mechanism: Executed 100% acguisition of AWC via share swap arangement (0.028 Alcoa shares per AWC Share) through a new stock issuance
Post-Transaction Ownership:
▷ AWC shareholders: 31.56% stake in merged entity via ASX-traded CDls
▷ CITlC Resources Holdings: 3.03% retained interest
Accounting Treatment: Classified as financial assets at FVOCl, with subsequent remeasurement linked to Alcoa's share price fluctuations
Financial lmpact: Recognized HK$ 110 million post-tax gain