The miner also reported a 13% drop in revenues to $5.8bn from its subsidiary Alcoa World Alumina and Chemicals (AWAC), as against revenues of $6.6bn for the previous year.
Alumina Limited CEO John Bevan reasoned that the difficult market conditions precipitated the losses following the profits in the previous year.
"Despite the very difficult market conditions, we are heartened by the sound operational performance of AWAC and the progress made on important initiatives that will ultimately strengthen the Company’s position and improve returns to shareholders," explained Bevan.
The company expects 48% of smelter grade alumina shipments during 2013, based on spot or alumina index prices.
With the improvement in spot alumina prices and surge in Chinese demand for bauxite is likely to better the company’s performance, said the miner.
"However, the outlook for the market in 2013 remains uncertain with macro-economic conditions, particularly in Europe, remaining difficult," added Bevan.
