Alcoa Signs $350 Million in Bauxite Supply Contracts
Alcoa World Alumina and Chemicals has secured multiple bauxite supply contracts valued at more than $350 million.
Alcoa recently announced that Alcoa World Alumina and Chemicals (AWAC) has secured multiple bauxite supply contracts valued at more than $350 million over the next two years. Under the contracts, the company reportedly will supply bauxite to external customers from three of its global mines as it continues to build its third-party bauxite business. The new contracts cover customers in China, Europe and Brazil.
“With our quality resources and deep technical expertise, we are well-positioned to deliver a stable supply of bauxite to customers across the global alumina industry,” said Garret Dixon, president. “Our strategy is to profitably grow our third-party bauxite sales, and these contracts demonstrate that we are well on track.”
Alcoa reportedly produced 45.3 million bone dry metric tons in 2015 and has ownership in seven active bauxite mines globally, four of which are operated by the company. These mines are strategically located near key Atlantic and Pacific markets, including the Huntly mine in Australia, the second-largest bauxite mine in the world. The AWAC group of companies is owned 60% by Alcoa and 40% by Alumina Limited of Australia.
As previously announced, Alcoa will separate into two publicly traded companies in the second half of 2016. The Upstream Company will comprise the five business units that today make up Global Primary Products: bauxite, alumina, aluminum, cast products and energy. The Value-Add company, to be named Arconic, will include the global rolled products, engineered products and solutions, and transportation and construction solutions businesses.
For more information, visit www.alcoa.com.