Alcoa Corporation announced Monday that it plans to restart 268,000 metric tons per year (mtpa) of aluminum capacity at the Alumar smelter in São Luís, Brazil, which has been completely reduced since 2015.
Above all, Alumar is a joint venture for the operation of a refinery and smelter in Brazil.
The refinery is owned by AWA Brasil (39.96%), Rio Tinto (10%), Alcoa Alumínio (14.04%) and South32 (36%).
AWA Brasil is part of the AWAC group of companies and is ultimately 60% owned by Alcoa and 40% by Alumina Limited.
The process to restart the idle capacity will begin immediately.
Likewise, the first molten metal is expected in the second quarter of 2022, and the total capacity of 268,000 tons per year is expected to be operational in the fourth quarter of 2022.
By 2024, the Alumar smelter will be powered by 100% renewable energy.
The smelter is jointly owned by a subsidiary of Alcoa and South32 and has three production lines with a total operating capacity of 447,000 metric tons, which includes Alcoa’s share of 268,000 metric tons.
The restart of the Alumar smelter will involve the hiring of more than 750 employees and will add to the 850 direct employees of the alumina refinery located in the same place.
Likewise, the cost of the restart is anticipated to be approximately $ 75 million, including approximately $ 10 million in capital expenditures.
The restart expenses expected to be incurred in the fourth quarter of 2021 are estimated to be between 15 and 20 million before taxes (10 and 13 million after taxes).
With this planned restart, Alcoa will have approximately 80% of its 2.99 million metric tons of global aluminum smelter capacity in operation.