Saudi Arabian Mining Co. reduced production levels at the aluminum smelter it owns with Alcoa Corp. after experiencing operational problems, but is now ramping back up, according to the company’s chief executive officer.
(Bloomberg) — Saudi Arabian Mining Co. reduced production levels at the aluminum smelter it owns with Alcoa Corp. after experiencing operational problems, but is now ramping back up, according to the company’s chief executive officer.
Maaden, as the Gulf’s largest mining company is known, took some of its potlines offline as it looked to stabilize the plant, CEO Robert Wilt said in an interview in Riyadh Wednesday.
No customers will be affected, Wilt said, declining to explain further. He didn’t say how much production had been affected.
“I don’t anticipate it affecting our budget,” Wilt said, when asked about the financial impact of the smelter problems.
The setback comes at a time when traders and investors are watching for signs that China’s Covid reopening will boost metals demand, while aluminum production outside of China is constrained after European smelters cut capacity due to high energy prices, and exchange inventories are near multidecade lows.
Maaden owns 75% and Alcoa holds 25% of the massive aluminum complex in Saudi Arabia, which includes the smelter, a mine, alumina refinery and rolling mill.
–With assistance from Thomas Biesheuvel and Jack Farchy.
(Corrects to say Alcoa Corp. in first paragraph)
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