"Alcoa operational control is a problem for Alumina as [the] Alcoa aluminium focus keeps loss-making refineries in production to feed smelters, removing [the] Alumina option to close out losses." The San Ciprian refinery feeds Alcoa's adjacent San Ciprian smelter and two smaller smelters in Spain. Those smelters are high-cost operations, with the only redeeming feature being the relatively low cost of alumina supply. "It is unlikely those smelters would survive without the San Ciprian refinery," said Mr McTaggart. He estimated AWAC would lose more than $US30 million ($42 million) of earnings before interest, taxes, depreciation and amortisation by continuing to operate Point Comfort and San Ciprian this year, but at spot prices, it would lose three times as much. AWAC's refineries at Pinjarra and Wagerup, in Western Australia, have much lower costs and remain highly profitable, even at spot prices.