Alumina Ltd (ASX: AWC) announced a profit windfall on Tuesday as it netted a total of $US44.2 million in the six months leading to June 30, as against the measly $US4 million it posted in the previous corresponding period.

Following a loss of $US10 million in the first half of 2008/09, the company reported that it achieved underlying earnings of $US22 million, which Alumina attributed to record sales volumes and efficient cost control.

Alumina sad that such factors effectively muffed the effects of "higher AUD/USD exchange rate and costs associated with previously advised ramp-up issues at the Brazilian operations."

Its impressive performance prompted Alumina to declare an interim distribution dividend of two US cents per share this year after it begged of from issuing interim dividends in the previous corresponding year.

The Australian mining firm is a 40-percent owner of Alcoa World Alumina and Chemicals (AWAC), which is presently the world's biggest alumina business operation with up to 17 percent dominance of global alumina output.

By virtue of its stakes in AWAC, Alumina collected some $US95 million in dividends as "AWAC generated cash from operations of $US300 million, up $US459 million."

Company chief executive John Bevan said that the worldwide alumina market has been witnessing a major turnaround as he predicted that demand would grow by 12 percent for the whole year round with corresponding spikes in market price.

Mr Bevan added that "the industry trend toward shorter and spot contracts for alumina has continued and the third party market for alumina sales to non-integrated aluminium producers continues to grow."

The company said that production reached a high of 7.4 million tonnes by the half year alone and registered an improvement of 16 percent from the prior period in 2009 despite the power and equipment bog downs that hit its refinery facilities in Brazil.

Alumina is projecting that a total of $200 million would be allocated by AWAC as growth capital expenditure for 2010 while another $200 million would be poured in sustaining capital.

And the prospects were only getting rosier as the company predicts that alumina production would reach a maximum of 15.5 million tonnes for the full year while aluminium production would peak to an estimated 355 kilotonnes on the same period.

Despite counting in the possible effects of price volatility, Alumina said that demands would register a 12 percent growth this year, up from the 10 percent earlier predicted by the company.

As of 1017 AEST on Tuesday, Alumina shares were trading at $1.655, collecting gains of 1.5 cents or about one percent from the previous trading day.