Alcoa said Monday it has curtailed Suralco's remaining 887,000 mt/year of alumina refining capacity as discussions continue with the Suriname government on preserving the country's bauxite and refining industry.

The refinery is scheduled to be idled by November 30, the company said in a statement.

President of Alcoa's global primary products, Bob Wilt said: "Suralco's ongoing energy challenges and limited bauxite supply, combined with unfavorable market conditions, mean it is no longer possible to continue operations."

Discussions between Alcoa and the Suriname government began in October 2014 to reach a joint solution for Suralco that has faced expiring bauxite reserves and lacks a long-term energy solution.

"Our immediate attention now turns to the employees of Suralco who have worked hard during these challenging times. We understand how difficult this decision is for employees and we will work closely with them and our unions, government and community stakeholders during the transition," Wilt said.

Total restructuring related charges in H2 2015 associated with the curtailment are expected to be between $65 million and $75 million after tax and non-controlling interest.

The curtailment follows Alcoa's March announcement to evaluate 2.8 million mt of refining capacity for possible curtailment or divestiture.

The review of its refining operations is consistent with the company's 2016 goal of lowering its position on the world alumina cost curve to the 21st percentile, it said.

Suralco is part of the Alcoa World Alumina and Chemicals group owned 60% by Alcoa and 40% by Alumina Limited.