UPDATE 1-Alcoa to stop production at Suriname refinery
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Sept 14 (Reuters) - Alcoa Inc said it would stop production at its Suralco alumina refinery in Suriname due to dwindling bauxite ore supply.
The company has been reducing its refining and smelting capacity and focusing in more advanced aerospace and automotive products as aluminum prices remain weak.
Alcoa said on Monday it would curtail 887,000 metric tons of remaining refining capacity at Suralco by Nov. 30, when the refinery would be idled.
The company will take a related restructuring charge of $65 million-$75 million, or $0.05-$0.06 per share, in the second half of 2015, half of which will be recorded in the third quarter.
The Suralco refinery has an annual refining capacity of 2.2 million metric tons.
Alcoa said in March it curtailed 443,000 metric tons per year of alumina refining capacity in addition to the 876,000 metric tons it had already idled.
Suriname's government and Alcoa have been in talks since October 2014 to reach a solution for Suralco.
The company's shares were down 1 percent at $9.55 in premarket trading on Monday. (Reporting by Arunima Banerjee in Bengaluru; Editing by Saumyadeb Chakrabarty)
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