ALCOA RESTARTS THE ALUMINIUM SMELTING PROCESS

ALCOA PLANS TO RESTART ALUMINUM SMELTING CAPACITY AT ITS ALUMAR PLANT IN BRAZIL

Multinational Alcoa plans to recover the 268,000 metric tons per year of aluminum capacity at the Alumar smelter in São Luís, Brazil, which had been completely reduced since 2015. The process to restart this inactive headquarters capacity will begin immediately.

According to the company, the first molten metal is expected to be ready in the second quarter of 2022, and the full capacity of 268,000 tonnes is expected to be operational by the fourth quarter of next year. The restart of the Alumar smelter will also involve the hiring of more than 750 employees in addition to the 850 direct employees of the alumina refinery located at the same site. In addition, by 2024, the smelter will be powered by 100 percent renewable energy.

%22Our restart decision is based on analysis showing that the smelter can be competitive in all cycles, leveraging the co-located refinery, a strong workforce and competitive renewable energy agreements,%22 says John Slaven, executive vice president and chief operating officer. He adds that %22with this planned restart, we will be able to leverage the strong capabilities of this site and realize benefits for our investors, customers, employees and stakeholders in the state of Maranhão in Brazil%22.

We are excited about the work ahead to safely and efficiently restart the Alumar smelter, and we appreciate the collaboration of our government and community stakeholders as we begin this important long process to build on Alcoa’s leadership and further enhance our global competitiveness,%22 said Otavio Carvalheira, vice president of operations and president of Alcoa in Brazil.

The smelter is jointly owned by a subsidiary of Alcoa and South32. The plant has three production lines with a total operating capacity of 447,000 metric tons which includes Alcoa’s share of 268,000 metric tons. Alcoa Alumínio, a wholly owned subsidiary of Alcoa Corporation, owns 60 percent of the smelting and foundry capacity while South32 owns the remaining 40 percent.

According to company estimates, the cost of such a reboot will be approximately $75 million. In this way, Alcoa will be able to recover 80 percent of its 2.99 million metric tons of aluminum smelting capacity.