Company Profiles
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Page | 198 Bauxite - Metallurgical: Global Industry, Markets and Outlook to 2026, 9th Edition 13. Appendix B: Company profiles 13.1 Alcoa Contact information Address Alcoa Global Center 390 Park Avenue New York NY 10022 USA Telephone + 1 412 553 4545 Website alcoa.com Source: Roskill Pangaea database Shareholder structure showing significant shareholdings Source: Roskill Pangaea database Headquartered in New York, lightweight metals producer, Alcoa is the largest US aluminium company and a world leader. It is fully integrated with activities in 30 countries, which includes bauxite mining, alumina refineries and primary aluminium production and fabricated products manufacture. Aluminium and alumina represent 43% of the company’s revenues, and in terms of importance the USA accounted for 51% of its sales, while Europe accounted for another 27% in 2014. In total the group has approximately 59,000 employees. On 28 September 2015, Alcoa announced that in the second half of 2016, it would separate into two independent, publically-traded companies. An upstream Global Primary products segment will be formed of the company’s Bauxite, Alumina, Aluminium, Casting and Energy businesses. A second Value-Add company will include the company’s Global Rolled Products Engineered Products and Solutions, and Construction Solutions businesses. Roskill Copyright © 2016 by Roskill Information Services Ltd. Unauthorised copying prohibited. www.roskill.com Bauxite - Metallurgical: Global Industry, Markets and Outlook to 2026, 9th Edition Page | 199 Alcoa: Locations and foreign interests Registered country USA Operating countries Australia Norway Brazil Saudi Arabia Canada Spain Greenland Suriname Guinea USA Iceland Co-owners of operations Australia Spain Canada USA China Channel Islands Japan Source: Roskill Pangaea database Notes: Countries Alcoa is shown to operate in, only includes bauxite, alumina and primary aluminium operations The upstream company will operate in 64 locations worldwide and possess the largest bauxite assets worldwide. Its refining business is anticipated to match growing demand from Asia, the Middle East and Latin America. Following the company’s decision to split, the upstream business will represent the world’s fourth-largest aluminium producer. The company has already been altering its alumina and primary metals sectors in the past few years, with capacity curtailments and closures necessary to keep operations economically viable. Roskill Copyright © 2016 by Roskill Information Services Ltd. Unauthorised copying prohibited. www.roskill.com Page | 200 Bauxite - Metallurgical: Global Industry, Markets and Outlook to 2026, 9th Edition Alcoa: Map of operations Source: Google; Roskill Pangaea database In 2015, owing to uncompetitive smelting and refining capacity, the company intended to reduce aluminium smelting capacity by 503ktpy and alumina refining capacity by 1.2Mtpy. Following these changes, Alcoa will have closed, divested or curtailed 45% of total smelting operating capacity since 2007. It has also cut back 2.5Mtpy of uncompetitive refining capacity since it reviewed 2.8Mt of refining capacity in March 2015. In terms of its aluminium business, Alcoa intends to idle the Intalco (Ferndale) and Wenatchee primary aluminium smelters in Washington State and the Massena West smelter in New York. By the end of Q1 2016, it will also permanently close the 269kt Warrick operations smelter in Evansville, Indiana. The company has taken the decision not to modernise the Massena East smelter and will permanently close the facility. The casthouses at Intalco and Massena West that produce value-added shaped products will operate as normal. Alcoa World Alumina and Chemicals (AWAC) is a global enterprise owned 60% by Alcoa and 40% by Alumina Limited. AWAC covers Alcoa's bauxite and alumina interests in Australia, Jamaica, Suriname, Guinea, Spain, the USA and Brazil. In 2007, Alcoa in association with Chinalco bought a 12% interest in Rio Tinto. Roskill Copyright © 2016 by Roskill Information Services Ltd. Unauthorised copying prohibited. www.roskill.com Bauxite - Metallurgical: Global Industry, Markets and Outlook to 2026, 9th Edition Page | 201 Alcoa: Subsidiaries and indirect interests in operations Subsidiary: Alcoa World Alumina and Chemicals (60%) USA Operation: Point Comfort (100%) USA Subsidiary: Alcoa of Australia (100%) Australia Operation: Willowdale (100%) Australia Operation: Huntly (100%) Australia Operation: Pinjarra (100%) Australia Operation: Kwinana (100%) Australia Operation: Wagerup (100%) Australia Operation: Portland aluminium (55%) Australia Subsidiary: Mineração Rio do Norte (5%) Brazil Operation: Trombetas (100%) Brazil Subsidiary: Alcoa World Alumina Brazil (100%) Brazil Operation: Juruti Brazil Operation: São Luís refinery (Alumar) (39%) Brazil Subsidiary: Halco Mining Consortium (45%) Guinea Subsidiary: Boké Investment Company (100%) Guinea Subsidiary: Compagnie des Bauxites de Guinée (51%) Guinea Operation: Sangarédi (100%) Guinea Operation: Kamsar Guinea Project: Sangarédi (capacity expansion) (100%) Guinea Subsidiary: Alúmina Española (100%) Spain Operation: San Ciprián Spain Operation: Avilés Spain Operation: La Coruña Spain Subsidiary: Suriname Aluminium Company (100%) Suriname Operation: Paranam (55%) Suriname Operation: Coermotibo (55%) Suriname Operation: Onverdacht (55%) Suriname Subsidiary: Alcoa World Alumina (AWA) (100%) USA Project: Kabata (50%) Guinea Subsidiary: Alcoa Minerals of Suriname (100%) Suriname Subsidiary: Alcoa Aluminio S.A (100%) Brazil Operation: Poços de Caldas Brazil Operation: São Luís smelter (Alumar) (60%) Brazil Subsidiary: Alcoa Saudi Smelting Inversiones Spain Subsidiary: Ma'aden Bauxite and Alumina Company (25.1%) Saudi Arabia Operation: Al Ba'itha Saudi Arabia Operation: Ras Al Khair Saudi Arabia Operation: Ras Az Zawr Saudi Arabia Subsidiary: Aluminerie de Bécancour (74.95%) Canada Operation: Bécancour (100%) Canada Subsidiary: Alcoa Norway Norway Operation: Lista Norway Operation: Mosjoen Norway Subsidiary: Aluminerie de Deschambault Canada Operation: Deschambault Canada Subsidiary: Aluminerie de Baie-Comeau Canada Operation: Baie-Comeau Canada Subsidiary: Intalco Aluminium Corporation USA Operation: Ferndale USA Source: Roskill Pangaea database Roskill Copyright © 2016 by Roskill Information Services Ltd. Unauthorised copying prohibited. www.roskill.com Page | 202 Bauxite - Metallurgical: Global Industry, Markets and Outlook to 2026, 9th Edition In 2014, Alcoa, largely through AWAC, had attributable bauxite capacity of about 46.3Mtpy in Australia, Suriname, Guinea, and Brazil, and 18Mt of attributable alumina capacity in Australia, the USA, Suriname, Spain and Brazil. In 2014, Alcoa consumed 40.8Mt of bauxite from AWAC and its own resources, and 8.2Mt from entities in which the company has an equity interest. On 15 October 2015, Alcoa signed a definitive agreement to sell its remaining stake in bauxite mining and alumina refining joint venture company Jamalco to the Noble Group for US$140M. AWAC will continue as the managing operator for three years under a compensated service agreement. The Jamalco joint venture had previously been 55% owned by Alcoa Minerals of Jamaica (AMJ) and 45% owned by Clarendon Alumina Production. Alcoa’s decision to sell AWAC’s stake in Jamalco is part of restructuring its upstream business and lowering the cost base of its commodity business. Alcoa: Operational details Capacity Name Location Country Status End products (ktpy) Willowdale Waroona Australia Operational Met. bauxite 10,500 Huntly Dwellingup Australia Operational Met. bauxite 23,000 Bayer/smelter Pinjarra Pinjarra Australia Operational 4,234 alumina Bayer/smelter Kwinana1 kwinana Australia Operational 2,190 alumina Bayer/smelter Wagerup Wagerup Australia Operational 2,555 alumina Portland aluminium Portland Australia Operational Aluminium 358 Porto Trombetas2 Brazil Operational Bauxite ore 18,100 Trombetas Juruti Juruti Brazil Operational Bauxite ore 3,600 Sangarédi3 Boké Guinea Operational Met. bauxite 7,500 Sangarédi (capacity Financing and Boké Guinea Met. bauxite 7,500 expansion) 3 permitting Bayer/smelter San Ciprián4 San Ciprián Spain Operational 1,550 alumina San Ciprián San Ciprián Spain Operational Aluminium 250 Avilés Avilés Spain Operational Aluminium 93 La Coruña La Coruña Spain Operational Aluminium 87 Bayer/smelter Paranam5 Paranam Suriname Operational 1,757 alumina e Coermotibo Coermotibo Suriname Operational Met. bauxite 1,500 e Onverdacht Onverdacht Suriname Operational Met. bauxite 1,600 Financing and Bayer/smelter Kabata6 Kabata, Guinea Guinea 1,500 permitting alumina Bayer/smelter Point Comfort7 Point Comfort USA Operational 2,305 alumina Bayer/smelter São Luís (Alumar) São Luís Brazil Operational 3,639 alumina São Luís (Alumar) São Luís Brazil Closed Aluminium 447 Pocos de Poços de Caldas Brazil Operational Met. bauxite 860 Caldas Pocos de Bayer/smelter Poços de Caldas8 Brazil Operational 390 Caldas alumina Saudi Al Ba'itha9 Qbah Operational Met. bauxite 4,000 Arabia Saudi Ras Al Khair9 Ras Al Khair Operational Aluminium 740 Arabia Saudi Ras Az Zawr9 Ras Al Zawr Operational Aluminium 740 Arabia Bécancour Bécancour Canada Operational Aluminium 430 Table continued…. Roskill Copyright © 2016 by Roskill Information Services Ltd. Unauthorised copying prohibited. www.roskill.com Bauxite - Metallurgical: Global Industry, Markets and Outlook to 2026, 9th Edition Page | 203 ….Table continues Capacity Name Location Country Status End products (ktpy) Fjardaal Fjardaal