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ALCOA SIGNS AGREEMENT TO EXPAND JAMALCO ALUMINA REFINERY
22 December 2004 - Alcoa
| Alcoa has announced that its Alcoa World Alumina and Chemicals (AWAC) affiliate and the Government of Jamaica have signed an agreement, in principle, to expand the Jamalco Alumina Refinery in Clarendon, Jamaica, by more than 1.5 million tonnes per year (mtpy).
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Alcoa has announced that its Alcoa World Alumina and Chemicals (AWAC) affiliate and the Government of Jamaica have signed an agreement, in principle, to expand the Jamalco Alumina Refinery in Clarendon, Jamaica, by more than 1.5 million tonnes per year (mtpy). The expansion will more than double the refinery's total capacity to at least 2.8 million mtpy. In addition, AWAC ownership in the refinery will move from 50% to 70%. The government of Jamaica will continue to own the remaining 30%. AWAC will pay approximately 85% of the total proposed US$800 million for the expansion and movement to 70% ownership. The expansion initiative stems from a 2002 agreement with the Jamaican government to remove a nearly 30-year-old levy on bauxite in order to encourage investment. At the time of the initial expansion (completed in 2003), the removal of the levy along with the expansion lowered costs at Jamalco by approximately 30%. This new expansion will place Jamalco among the world's lowest-cost refineries. AWAC is a global alliance between Alcoa and Alumina Ltd, with Alcoa holding 60%. A final decision to move forward on the project is expected to be made in the first half of 2005. Upon approval, it is expected that the expansion project will be completed by the end of 2007. The Jamalco expansion is one of several key alumina expansion projects being actively pursued by AWAC. Alcoa World Alumina, Alcan and the Government of the Republic of Guinea have signed a protocol for developing jointly a 1.5 million tonne per year (mtpy) alumina refinery in Guinea, West Africa. A detailed feasibility study for the refinery is expected to be completed by mid-2005, with construction set to begin thereafter.
Suriname-Paranam - Suralco, owned by AWAC, is now expected to complete the previously announced 250,000 mtpy expansion to its Paranam alumina refinery in January 2005, 6 months ahead of schedule. Upon completion, the facility's total capacity will be approximately 2.2 million mtpy. Also, Suralco and BHP Billiton are engaged in bauxite exploration in western Suriname that could confirm significant additional reserves, leading to further expansion of alumina production capability in Suriname via brownfield or greenfield development. Suralco and BHP Billiton own 55% and 45%, respectively, of the Paranam facility. BHP Billiton is the parent company of Suralco's joint venture partner in Suriname.
*Australia - Pinjarra -- The 600 000 mtpy efficiency upgrade of the AWAC facility in Pinjarra Australia continues to be on-track for completion by the end of 2005. Upon completion of the upgrade, the facility's capacity will expand from 3.4 million mtpy to 4 million mtpy, further enhancing one of the worlds most successful and cost-efficient alumina refineries.
*Brazil-Sao Luis -- Engineering efforts and work toward securing permits for the 2-million mtpy expansion of the Alumar alumina refinery in Sao Luis and the Juruti bauxite reserve in Brazil were recently expedited. Alcoa's board is expected to review these projects and make a final decision late in 2005. Preliminary design studies have already been completed. The Alumar refinery is jointly owned by BHP Billiton (36%), Alcan (10%), Alcoa Aluminio (35.1%) and Abalco SA (18.9%). Abalco is part of AWAC.
http://www.alcoa.com
About: Alcoa
Alcoa is a leading producer of primary aluminium, fabricated aluminium and alumina and is active in all major aspects of the industry. It serves the aerospace, automotive, packaging, building and construction, commercial transportation and industrial markets, bringing design, engineering, production, and other capabilities of Alcoa's businesses as a single solution to customers. The company has 120 000 employees in 41 countries. In addition to aluminium products and components, Alcoa also makes and markets consumer brands including Reynolds Wrap, Alcoa wheels, and Baco household wraps. Among its other businesses are vinyl siding, closures, fastening systems, precision castings, and electrical distribution systems for cars and trucks. Alcoa makes a very sustainable product: almost 70% of the aluminium ever produced is still in use, equalling 480 million tonnes of a total 690 million tonnes manufactured since 1886.
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