Alcoa Secures First Major Export Contract to Supply Bauxite From Western Australia Mine
December 19 2016 - 05:00PM
Business Wire
Western Australia State Government approves
additional Alcoa third-party bauxite exports
Alcoa Corporation (NYSE: AA), the world’s largest bauxite miner,
today announced that Alcoa World Alumina and Chemicals (AWAC) has
secured its first major third-party contract to supply
approximately 400,000 bone dry metric tons (bdmt) of bauxite from
its Huntly mine in Western Australia (WA), furthering Alcoa’s
strategy to grow its third-party bauxite business.
“This Western Australian contract comes just months after our
first trial bauxite shipment from WA to China in mid-2016, which
successfully introduced our WA product to the global market,” said
Garret Dixon, President of Alcoa Bauxite, who is based in
Perth.
The WA State Government has also granted approval for Alcoa to
export up to 2.5 million metric tons per annum of bauxite for five
years to third-party customers.
”Bauxite exports have the potential to generate greater value
from our WA mineral lease, creating additional revenue streams for
Alcoa and the State of Western Australia, while maintaining supply
to our three WA refineries,” Mr Dixon said.
The WA contract is one of three bauxite agreements recently
signed worth a total of $US126 million to deliver approximately 2.2
million bdmt of bauxite to customers in China in 2017. In addition
to the WA contract, Alcoa will supply bauxite from its two mines in
Brazil—Juruti and Mineração Rio do Norte, where Alcoa and AWAC hold
an 18.2 percent equity investment. The two supply agreements for
Brazil bauxite replace 2016 contract volume.
The contracts increase the total value of Alcoa’s 2016 and 2017
third-party bauxite supply agreements to nearly $US600 million.
Alcoa, the world’s largest bauxite miner with 45.3 million bdmt
of production in 2015, has mines in proximity to major markets and
holds a first quartile cost curve position. Alcoa projects that the
market for third-party bauxite demand will double between 2015 and
2024, with China as the biggest importer of bauxite.
The AWAC group of companies is owned 60 percent by Alcoa
Corporation and 40 percent by Alumina Limited of Australia.
On November 1, Alcoa Corporation announced it had completed the
separation from its parent company Alcoa Inc. (now named Arconic
Inc.) and began operating as an independent, publicly-traded
company.
About Alcoa Corp.
Alcoa (NYSE: AA) is a global industry leader in bauxite, alumina
and aluminum products, with a strong portfolio of value-added cast
and rolled products and substantial energy assets. Alcoa is built
on a foundation of strong values and operating excellence dating
back nearly 130 years to the world-changing discovery that made
aluminum an affordable and vital part of modern life. Since
inventing the aluminum industry, and throughout our history, our
talented Alcoans have followed on with breakthrough innovations and
best practices that have led to efficiency, safety, sustainability
and stronger communities wherever we operate. Visit us online on
www.alcoa.com, follow @Alcoa on Twitter and on Facebook at
www.facebook.com/Alcoa.
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at www.alcoa.com.
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Alcoa CorporationInvestor Contact:James Dwyer,
212-518-5450James.Dwyer@alcoa.comorMedia Contacts:(US) Monica Orbe,
212-518-5455Monica.Orbe@alcoa.comor(AU) Jodie Read, +61 404 800
335Jodie.Read@alcoa.com.au
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