The Saudi Arabia state-owned mining company headquartered in Riyadh, Ma'aden, announced on Wednesday that due to operational issues, the company had curtailed output at the aluminium smelter it jointly owns with Alcoa Corp., but the firm is currently scaling output back up.
According to Robert Wilt, the CEO of Ma'aden, at the same time, the company worked to stabilise the operation and address quality-control concerns. He spoke of "high anode effects," which can introduce undesired contaminants into aluminium, lowering its grade.
"I don't anticipate it affecting our budget," added Wilt.
Wilt refused to provide details but said no clients would be impacted due to the shutdown. He omitted to mention how much the output had been affected. Ma'aden and Alcoa control 25 per cent of the enormous Saudi Arabian aluminium complex, which comprises a smelter, a mine, an alumina refinery, and a rolling mill.
Traders and investors are waiting for indications that China's relaxation of Covid limits will increase metals demand when the setback occurs. At the same time, exchange inventories are at multi-decade lows, and aluminium output outside of China is restricted by European smelters reducing capacity due to high energy prices.
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