Workers at QAL's Barney Point refinery axed as alumina price hits 25-year low

The critically low alumina price in the interational market has forced Queensland Alumina Limited to axe workers from its Barney Point refinery.

The company did not disclose the number of people made redundant, but did say they were in 'support' roles.

"As a result of significant pressure on the aluminium industry we are working to reduce costs to make QAL more competitive," said QAL general manager Mike Dunstan. "QAL has been through these cycles before, and there are times when it does get really rough but but this is the roughest we've seen," Mr Dunstan added.

The price of aluminium is at its lowest price in 25 years, now at about US$205 per tonne, down from the consistent average in recent years of US$330 per tonne.

QAL Management said the changes would eventually make the refinery, that has been in Gladstone since 1967, a stronger business.

In December Rio Tinto, the owner of QAL, aluminium chief executive officer Alfredo Barrios said QAL and Rio Tinto Yarwun were losing money due to the low alumina prices. He said the company planned to aggressively drive costs out of the business.

Since his statement the price of alumina has continued to drop and is expected to drop by 18% this year. Gladstone Industry Leadership Group chairman Patrick Hastings said the market conditions were at a historic low.

"QAL is a long term member of our community and we know they will do everything they can to support their employees. As a community, we need to band together, and not only support our industry, but also look to other opportunities to grow our local economy by creating new small and medium businesses," he said.

Copyright and Exemption Declaration :¢ÙAll articles, pictures and videos that are marked with "China Aluminum Network" on this website are copyright and belong to China Aluminium Network (www.alu.com.cn). When transshipment, any media, website or individual must list the source from "China Aluminium Network (www.alu.com.cn)". We seek legal actions against anyone that disobey this. ¢ÚArticles that marked as copy from others are for transferring more information to readers, do not represent or endorse their opinions or accuracy and reliability. When other media, website or individuals copy from our website, must keep the source. Anyone that changes the articles' sources will hold the responsibilities for copyright and law problems. We also seek legal actions against anyone that disobey this. ¢ÛIf any articles copied by our website concern the copyright and other problems, please contact us within one week.