Qatalum opts to scale down production

Norsk Hydro ASA of Finland announced a controlled shutdown of aluminum production at its joint venture Qatalum in Qatar March 3; however, following confirmation from Qatalum’s gas supplier that it will maintain supply at reduced levels, Qatalum has decided to halt further curtailment of the plant and maintain aluminum production at approximately 60 percent capacity.

With Iran conflict affecting the region, the company had opted for a controlled shutdown of aluminum production after QatarEnergy, the gas supplier to the site, informed Qatalum of a forthcoming suspension of gas supply. QatarEnergy since has confirmed that gas supply will continue until further notice at a level enabling Qatalum to maintain reduced aluminum production.

Hydro owns a 50 percent stake in Qatalum, and Qatar Aluminum Manufacturing Co. Q.P.S.C. owns the other 50 percent. The plant has primary aluminum nameplate capacity of 648,000 metric tons and casthouse capacity of 687,000 metric tons. The site is fully integrated with a smelter, casthouse, carbon plant and a dedicated gas-fired power plant.

Hydro says the curtailment has been carried out in a safe and controlled manner. That and being able to continue operations at reduced capacity improve conditions for a future restart, though Hydro says it does not know when full production will begin.

Iran’s Revolutionary Guard Corps announced March 2 that the Strait of Hormuz was closed, and shipping remains disrupted. Hydro says it is working to mitigate the consequences of the curtailment and shipping disruptions, with the safety of Qatalum employees remaining the highest priority.