"Rio walked away from the Cameroon Aluminium smelter as it could...

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vespasian03

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23/12/20

13:23

Post #: 49779818
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Originally posted by Eclipse+: ↑

Unfortunately there are two key refinery centers globally now really separating from the pack and the pack is dying in a sea of red on their balance sheets. The two centres are China and the Gulf/Middle east the key reasons can be distilled down to low energy cost and an abundance of cheap caustic neither of these are available to Cameroon. Never say never but very unlikely remember Rio walked away from the Cameroon Aluminium smelter as it could not compete globally as it is a very old tech smelter with very high energy costs. It is now an albatross around the Cameroon Governments neck, runs at a massive loss simply to keep jobs, that is not sustainable in the longer term. It also runs on hydro power and it is well known the river is drying up and not generating enough energy to run the smelter. This would mean that a new smelter would also have to built as well as a refinery and a major power generation project as well never say never but unlikely in my personal opinion only....

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"Rio walked away from the Cameroon Aluminium smelter as it could not compete globally as it is a very old tech smelter with very high energy costs."

Very simplistic statement....Rio's move was much more considered and complex than that....a bit of research might help you...but as a non holder you may not be bothered. Not sure why you bother anyway as I read back over your posts. Motivation?

CAY Price at posting: 10.5¢ Sentiment: Buy Disclosure: Held
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