THE LARGEST aluminium refinery in Europe, Rusal Aughinish on the Shannon estuary, returned to profit last year after sustaining combined pre-tax losses of $63.6 million (€43.7 million) in 2009 and 2008.

A spokesman for the company confirmed yesterday that its 2010 accounts are expected to show a “modest level of profitability given the size of the site investment”, when they are finalised.

According to spokesman, a 195-acre facility for disposing of bauxite residue from the plant will be completed and commissioned later this month. It will extend the life of the plant to at least 2026.

The site will hold up to 18 million tonnes of the waste, known as “red mud”. The existing disposal facility, which holds 23 tonnes of waste, will be full next year.

Rusal has been working on the project for the last three years. It will have the capacity to accept 1.2 million tonnes of the bauxite residue each year.

Aughinish Alumina secured planning permission from An Bord Pleanála for the bauxite residue disposal area in 2007 in the face of opposition from local farmers and residents.

Work was suspended on the project in 2009 as a result of the then very difficult trading conditions when alumina production at Aughinish plummeted.

Last year, the facility enjoyed a 50 per cent increase in production, producing 1.86 million tonnes of alumina after processing 4.1 million tonnes of bauxite ore.

This compares to 1.24 million tonnes of alumina produced after processing 2.7 million tonnes of ore in 2009.

Rusal’s spokesman said the 2010 production rate represented a return to a normal annual production rate. During 2009 output was cut very significantly due to reduced worldwide demand.

“Production rates in 2011 are expected to be only slightly higher than 2010 rates,” he added.

The plant employs 650 workers made up of 450 permanent staff and 200 contractors. The company estimates that it contributes €100 million a year to the local economy.