Vanalco, Inc., a Delaware S Corporation, Richard L. Smith, Tax Matters Person - Page 3




                                        - 3 -                                         

               Vanalco is in the business of smelting aluminum.  In 1987,             
          Vanalco purchased its smelting facility from ALCOA, which had               
          begun operations at this facility in 1940.  The basic elements              
          required to make aluminum are alumina, electrical energy, and               
          carbon.  The chemical process involved in the production of                 
          aluminum is electrolysis.                                                   
               In the smelting process, large buckets carried by overhead             
          cranes bring alumina to hoppers positioned on top of reduction              
          cells (cells).  The hoppers feed the alumina into the center of             
          each cell where it is dissolved in a bath of a molten cryolite              
          solution (bath).  An anode, which is a cubical carbon block                 
          attached to a copper rod, is introduced into the cell, and                  
          electrical current is passed from the anode, through the alumina-           
          cryolite solution, and into a cathode.  Cathodes are carbon                 
          blocks that line the bottom of the cell.  The electrical current            
          flows out of the cathode through embedded steel collector bars,             
          then through a riser and into the anode in the next cell.  The              
          electrical current reduces the alumina to aluminum and oxygen,              
          and this process produces aluminum continuously.  Every other day           
          the molten metal is removed from the cells and transferred to a             
          casting area called the ingot plant (the plant).  In the plant,             
          the molten metal may be either poured into molds directly and               
          allowed to solidify or combined with other alloys and cast into             
          pig or log shapes.                                                          





Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011