(Updates with detail on output cut, background)
March 15 (Reuters) - The Australian unit of U.S.
aluminium producer Alcoa Corp said on Wednesday output at
its Portland smelter in Victoria would be reduced to about 75%
of its total capacity of 358,000 metric tonnes per year, citing
instability and production challenges.
Australia's Alumina Ltd owns a 40% stake in Alcoa
Australia, which holds a 55% stake in the Portland Aluminium
joint venture.
The smelter, which was previously operating at about 95% of
its total capacity, is contending with uncertainty and hurdles
related to the production of rodded anodes necessary to
transport electricity into the smelting pots, Alcoa Australia
said in a statement.
"Our teams are focused on safely taking the production
offline and working to restore stability across the facility,"
Rob Bear, vice president for operations at Alcoa's domestic
business, said.
The cut in production will begin immediately, it said,
without setting out a timeline on when the smelter would return
to full capacity.
Alcoa's local unit had, earlier this year,
flagged
a 30% production cut at its partially owned Kwinana alumina
refinery due to a gas supply shortfall.
(Reporting by Rishav Chatterjee in Bengaluru; Editing by Dhanya
Ann Thoppil)
