The Portland aluminium smelter is located at
Portland, Victoria
Portland is a city in Victoria, Australia, and is the oldest European settlement in the state. It is also the main urban centre in the Shire of Glenelg and is located on Portland Bay. As of the 2021 census the population was 10,016, increasing ...
,
Australia
Australia, officially the Commonwealth of Australia, is a Sovereign state, sovereign country comprising the mainland of the Australia (continent), Australian continent, the island of Tasmania, and numerous List of islands of Australia, sma ...
. The smelter has a production capacity of 345,000 tonnes of aluminium per year
The smelter is a joint venture owned by
Alcoa World Alumina & Chemicals (55%),
CITIC
CITIC Group Corporation Ltd., formerly the China International Trust Investment Corporation (CITIC), is a state-owned investment company of the People's Republic of China, established by Rong Yiren in 1979 with the approval of Deng Xiaoping ...
(22.5%) and
Marubeni
(, OSE: 8002, NSE: 8002) is a ''sōgō shōsha'' (general trading company) headquartered in Nihonbashi, Chuo, Tokyo, Japan. It is one of the largest ''sogo shosha'' and has leading market shares in cereal and paper pulp trading as well as a st ...
(22.5%). Alcoa manages the smelter operations.
The smelter was commissioned between 1986 and 1988. It consists of two potlines of Alcoa A817 reduction cells, operating at a line current of over 310kA. Portland is the only smelter using this technology.
Alumina is delivered bi-weekly from Western Australia via a ship known as "The Portland". From the harbour, it is transported to the smelter via an enclosed conveyor belt several kilometres long. The majority of aluminium ingots are trucked out of Portland to other ports, although some is shipped directly from the Port of Portland.
The smelter has been the subject of significant controversy since its inception in 1986. In 1984, under the leadership of
John Cain, the
ALP government signed a joint venture agreement with Alcoa to build an aluminium smelter at Portland. The State Government entered into a deal with Alcoa, which provides for subsidised electricity until 2016, at a price linked to the world price of aluminium. It is estimated that the cost of electricity for the smelter is $14 per MWh (1.4 cents per kWh), and that it has cost the state more than $2 billion over 20 years.
The Portland smelter is believed to consume between 8 and 10 per cent of the state's electricity.
Given that most of this energy is derived from
brown coal
Lignite, often referred to as brown coal, is a soft, brown, combustible, sedimentary rock formed from naturally compressed peat. It has a carbon content around 25–35%, and is considered the lowest rank of coal due to its relatively low heat ...
in the
Latrobe Valley
The Latrobe Valley is an inland geographical district and urban area of the Gippsland region in the state of Victoria, Australia. The traditional owners are the Brayakaulung of the Gunai nation. The district lies east of Melbourne and nestle ...
, the production of aluminium is a significant contributor to
Victoria's greenhouse emissions
Greenhouse gas emissions from human activities strengthen the greenhouse effect, contributing to climate change. Most is carbon dioxide from burning fossil fuels: coal, oil, and natural gas. The largest emitters include coal in China and la ...
.
In 2009 it was reported that the smelter in Portland has cost Victorian taxpayers $4.5 billion in subsidies.
Mr Rob Maclellan, who served as a minister under the Hamer and Kennett governments, said the decision to build the smelter 500 km away from the power station was a mistake and the subsidies given to the smelter should not continue.
In March 2010 it was announced that the operators of
Loy Yang A power station (Loy Yang Power) had signed a contract with the smelter operators for the supply of electricity to power aluminium smelters at Portland and
Point Henry
Moolap is a residential and industrial suburb of Geelong, Victoria, Australia. The name Moolap is derived from an Aboriginal word for nearby Point Henry, moo-laa, thought to mean 'men gathering to go fishing'.
Moolap is located in the City of ...
until 2036, the previous power contracts expired in 2014.
In December 2016 the smelter lost power for more than 5 hours due to fault on the Victorian transmission network. In January 2020, tornadoes tore down pylons on a 500 kV transmission line, causing the 500 MW smelter to be connected only to the South Australia grid for weeks, supplied by the
Mortlake Power Station
The Mortlake Power Station is a 566 MW open cycle gas-fired power station developed by Origin Energy, located 12 km west of Mortlake, Victoria.
Construction of the $640 million power station began in 2008. It was initially due to be operat ...
.
See also
*
List of aluminium smelters
This is a list of primary aluminium smelters in the world. Primary production is the process by which alumina is smelted to pure aluminum metal. Secondary production is the process of recycling aluminum scrap into aluminum that can be used again ...
References
External links
*
Aluminium smelters in Australia
Portland, Victoria
Alcoa
Economy of Victoria (Australia)
{{VictoriaAU-struct-stub