William Oplinger: So, Carlos, you can imagine we completely understand what the process is, at least from a legal and a tactical perspective going forward. I really hate to speculate on what — what an assessment would look like, what an assessment would cover and until we had better insight into the EPA’s decision-making process around what they would actually be assessing, it’s really hard to answer that question. We’re moving forward on the path to, you know, over the next 75 days to ensure that our permits get approved through the process and that’s the focus. If we find ourselves in an assessment part of the process, we’ll have to determine what is assessed and what the impact will be at that point and we’ll let you know.
Carlos De Alba: All right. Okay. And before I ask a question on smelting just a clarification, maybe Molly, I thought you were — you had guided to around $55 million impact in the third quarter because of the bauxite issues, increasing from 45 in the second quarter. So you did better than that, right. Just to make sure that, that is based on the initiatives and the efforts you’re doing to control these costs.
Molly Beerman: Yeah, Carlos, it’s actually three things. We did draw on stockpiles that had slightly better quality than we expected during the third quarter. We also see the refineries operating very well with the lower bauxite quality and then third, you’re right, the mitigation efforts are just starting to drive down costs.
Carlos De Alba: All right, thank you, Molly. And then finally, is there any update or any comments that you can provide on the situation of European smelters, I mean Lista remains with a third of the capacity shutdown. I don’t know if there is any renegotiation or upcoming renegotiations of contracts for energy in Lista and Motion or the smelter in Ireland that is relevant given where prices are today.
William Oplinger: So let’s look at them independently, Motion is very well positioned and has a good energy source, is probably one of our most profitable plants in the system. So, Motion is in good shape. However, this new carbon legislation that is potential that could be — could be passed into law in December, I think, we’ve noted the fact that we could have up to $24 million negative in the fourth quarter associated with Motion and Lista on based on that new carbon legislation. That type of a change in legislation makes it really difficult to make long-term decisions around investments in places like Norway. So, it’s one of the disappointing things that I continue to see out of the Norwegian budgeting system that — that it really, really makes it hard to determine that you’re going to put a lot of capital into an environment where there is not a good structure around carbon or at least a predictable structure around carbon.
In the case of Lista, Lista is slightly different, no plans at this point to potentially restart that idled capacity, Lista given its size, given its age, given its cost structure is under a lot of pressure, and so revert back to my comments from earlier in the presentation. Lista is an area that we’re looking at, it’s very similar to Kwinana, every opportunity to try to make that plant more competitive and we need to give some of the headwinds that’s facing especially on the carbon side.
Carlos De Alba: All right, great. And listen you have also a good contract there and no changes in the short term, right.
William Oplinger: We have a long-term power contract in Iceland, there is a repricing mechanism that comes up later in the decade, but that’s later I would say in the 2027 – 2028 timeframe.
Carlos De Alba: Thank you very much, Bill.
Operator: The next question is from Chris LaFemina with Jefferies. Please go ahead.
Christopher LaFemina: Thanks. Hey, Bill. Congratulations on the new role and good luck.
William Oplinger: Thank you.
Christopher LaFemina: So just a question on the WA mining situation. So if the EPA does an assessment on the 2022 five-year plan, which is, I guess the one that you’re operating under right now. Can you continue to mine, so I understand the point about lower grades until 2027 when you move up to Myara and Holyoake, but before that, is there a risk that they would — they would basically not allow you to mine because reviewing the plan that you currently operating or do you — do you have confidence that you’d be able to continue to mine under the existing plan.
William Oplinger: Well, I think there are a variety of different outcomes that could occur if they go to a full assessment, but again as I answered to Carlos, let’s see what gets assessed and we will react accordingly. We’re confident that we are doing all the right things to avoid either having an assessment or not getting our mine permits approved. So, we’re doing all the right things, we have line of sight to have an answer this quarter we believe and if we — depending on that outcome we will take the right actions.
Christopher LaFemina: And does the — does the decision at the EPA makes as to whether they’ll do an assessment, get impacted by the concessions that you’re offering to make now or do they just base it on what the existing plan basically allows you to do?
William Oplinger: You know, I don’t know the answer to that one. So we would need to revert back to you. I’m not certain of that.
Christopher LaFemina: Okay. All right. Thank you very much and good luck.
William Oplinger: Thanks.
Operator: Thanks. And our final question today is a follow-up from Lucas Pipes with B. Riley Securities. Please go ahead.
Lucas Pipes: Thank you very much, operator. Thank you very much for taking my follow-up question, Western Australia again that the $45 million order of magnitude what sort of savings could you be looking at, I think, you noted $10 million at Kwinana that would take it down to $43 million or so per quarter going forward. Order of magnitude, how much more could you be looking at? Thank you very much.
