Forward delivery contracts and financial instruments

9 Months Ended

Sep. 30, 2015

Forward Delivery Contracts and Financial Instruments [Abstract]

Forward delivery contracts and financial instruments

As a producer of primary aluminum, we are exposed to fluctuating raw material and primary aluminum prices. From time to time we enter into fixed and market priced contracts for the sale of primary aluminum and the purchase of raw materials in future periods.

Forward Physical Delivery Agreements

Primary Aluminum Sales and Tolling Contracts



Contract	Customer	Volume	Term	Pricing
Glencore Grundartangi Metal Agreement	Glencore	All primary aluminum produced at Grundartangi, net of tolling and other sales commitments	January 1, 2014 through December 31, 2017	Variable, based on LME and European Duty Paid premium
Glencore U.S. Aluminum Sales Agreement	Glencore	Substantially all of the primary aluminum produced in North America	January 1, 2015 through December 31, 2016	Variable, based on LME and Midwest premium and product premiums, as applicable
Glencore Toll Agreement	Glencore	90,000 tonnes per year ("tpy")	Through July 2016	Variable, based on LME and European Duty Paid premium

Apart from the Glencore Grundartangi Metal Agreement, the Glencore U.S. Aluminum Sales Agreement and the Southwire Metal Agreement (which expired at the end of 2014), we had the following forward delivery contractual commitments:

Other forward delivery contracts



	September 30, 2015	December 31, 2014
	(in tonnes)
Other forward delivery contracts – total	6,486	6,108
Other forward delivery contracts – Glencore	—	4,058

We had no significant outstanding primary aluminum forward financial sales contracts or significant fixed price forward financial contracts to purchase aluminum at September 30, 2015.