US Alcoa Commissions Juruti Bauxite Mine In Brazil
September 15 2009 - 3:36AM
Dow Jones News
U.S. aluminium producer Alcoa Inc (AA) Tuesday said it
commissioned the opening of its new bauxite operations in Juruti,
Brazil, moving the company into the top quartile on the global cost
curve in terms of low-cost production and completing the first of a
two-pronged investment program in the country.
The 2.6 million metric tons a year mine, located in the heart of
the Amazon, will supply Alcoa's Alumar refinery expansion, the
second part of the investment program which is on schedule to be
commissioned later this year.
The Juruti operations - part of the Alcoa World Alumina and
Chemicals, or AWAC, joint venture with Alumina Ltd, in which Alcoa
holds a 60% share - consist of a port facility, a mine and a
50-kilometer rail system to the port.
"This mine will serve our operations in Brazil and lower our
costs," said Franklin Feder, President of Alcoa Latin America.
"At the same time we will mine bauxite and return the area to
the same, if not better, condition than when we initially arrived.
Our commitment is to deliver on both the business efficiency and
the stewardship of the region."
The expansion at the 2.1 million tons a year Alumar alumina
refinery in Sao Luis, Brazil will bring total production there to
3.5 million tons annually.
Following the expansion, Alcoa Aluminio and AWAC combined will
hold a 54% share of the refinery. The remaining share is held by
BHP Billiton PLC (BHP) (36%) and Rio Tinto Alcan (10%), a
subsidiary of Rio Tinto PLC (RTP). The Alcoa share of the combined
investment for the two Brazil initiatives is around $2.2
billion.
-By Andrea Hotter, Dow Jones Newswires; +44 (0)20 7842 9413;
andrea.hotter@dowjones.com