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UPDATE 1-Alcoa to take charge related to NY state river cleanup
October 1, 2012 / 8:11 PM / in 5 years

UPDATE 1-Alcoa to take charge related to NY state river cleanup

* EPA suggests 10 clean-up options for smelter site
    * Alcoa expects to take $85 mln charge in Q3 for work
    * Stock up slightly

    Oct 1 (Reuters) - Aluminum company Alcoa Inc said on
Monday it expects to record a charge of about $85 million in the
third quarter, related to an environmental clean-up of a river
near one of its U.S. smelters.
    The company confirmed that the U.S. Environmental Protection
Agency (EPA) released a Proposed Remedial Action Plan (PRAP) for
the Grasse River, close to Alcoa's Massena smelter in northern
New York state, near the Canadian border.
    Alcoa has worked with the EPA and other agencies to evaluate
remedial alternatives to address elevated levels of
polychlorinated biphenyls (PCBs) in fish in the river, it said.
    The alternative proposed by the EPA is one of 10 clean-up
options evaluated in an analysis that Alcoa submitted.
    The PRAP is now open for public comment until November 15,
after which the EPA will issue a final decision as to which
method of cleanup to adopt.
    Alcoa said the majority of funding for the project will be
spent between 2016 and 2020. The estimated cost for the proposed
alternative is within the range Alcoa has previously disclosed.
    As a result, Alcoa expects to record an associated after-tax
charge of about $85 million, or 8 cents per share, in its third
quarter 2012 results. 
    A company spokeswoman said Alcoa has already spent over $200
million for clean-up operations following the use of PCB's at
Massena as fire retardants in the 1950's and 60's.
    Alcoa stock was up 6 cents at $8.91 in afternoon trading on
the New York Stock Exchange.

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