Western Australia State Government approves additional Alcoa
third-party bauxite exports
NEW YORK & PERTH, Australia--(BUSINESS WIRE)--
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
“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
”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
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,
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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James Dwyer, 212-518-5450
(US) Monica Orbe, 212-518-5455
Jodie Read, +61 404 800 335
Source: Alcoa Corporation