'Deteriorating': National extent of BSL cuts revealed

THE full extent of Boyne Smelter Limited's recent production cut on the national aluminium industry has been revealed in a government report.

The Resources Quarterly, released in March, details how the Rio Tinto-owned smelter's cuts would drive down aluminium exports in Australia this year.

"The outlook for Australia's aluminium exports in 2016 - 17 has deteriorated since our last report," it reads.

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A combination of BSL's production cuts and a major power outage at South Australia's Portland smelter late last year are the two main reasons for the drop in exports.

"In 2015-16, Australia's aluminium production remained steady at 1.64 million tonnes, with no major additions or closures," it reads. "However, production for 2016-17 is forecast to fall by 4.9 per cent to 1.57 million tonnes."

WATCH | Boyne Smelter general manager Joe Rea explains

Australia's aluminium exports are expected to drop by 2.2 per cent to 1.41 million tonnes, with BSL being a major factor in the drop.

However, with the rise in aluminium prices, export values are estimated to rise by 1.2 per cent to $3.33 billion.

Earlier this year BSL announced it would cut production by 14% amid high electricity prices. The move meant more than 100 people lost their jobs.

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