Alumar Begins Repair Work on Ship-to-Shore Conveyance System

Rhea-AI Summary

Alcoa Corporation announced a temporary reduction in alumina refinery production by 25% for approximately 10 days due to a failure in its two-belt conveyance system at the Alumar facility in Brazil. The failure occurred on March 25, 2023, impacting material unloading while the pier remains operational. The refinery, with a nameplate capacity of 3,860,000 metric tons per year (mtpy), will rely on existing inventories during this period and explore alternative delivery methods for raw materials. Alcoa owns a 14.4% stake in the Alumar refinery, which is operated as a joint venture.

Positive

• The Alumar refinery is still able to berth vessels despite the conveyance system failure.
• Alcoa is working on alternative delivery methods for raw materials.

Negative

• Production cut of 25% could impact overall output and revenue.
• Reliance on existing inventories may lead to supply chain risks.

Alumina Refinery Production to Be Temporarily Reduced

PITTSBURGH--(BUSINESS WIRE)-- Alcoa Corporation announced today that engineering crews are working now to support repairs on a two-belt system that conveys raw materials from the pier at Alumar, the Aluminum Consortium of Maranhão in Brazil.

The conveyance system, which moves bauxite, coal, coke and pitch, failed on Saturday, March 25, 2023, preventing the unloading of materials. The pier is not damaged and can still berth vessels.

Since the failure of the conveyance system, Alumar’s refinery and smelter have been operating on existing inventories while working on alternative delivery methods and planning repair work.

To conserve existing bauxite inventories, daily refinery production will be reduced by approximately 25 percent for approximately 10 days. The Alumar refinery has a nameplate capacity of 3,860,000 metric tons per year (mtpy), of which 2,084,000 mtpy is Alcoa’s consolidated capacity. Alternative delivery methods for the smelter’s raw materials are underway.

Alumar is an unincorporated joint venture for the operation of a refinery, smelter and a casthouse. The refinery is owned by Alcoa World Alumina Brasil - AWAB (39.6 percent), South32 (36 percent), Alcoa Alumínio (14.4 percent), Rio Tinto (10 percent). The smelter and casthouse are owned by Alcoa Alumínio (60 percent) and South32 (40 percent).

About Alcoa Corp.

Alcoa (NYSE: AA) is a global industry leader in bauxite, alumina and aluminum products with a vision to reinvent the aluminum industry for a sustainable future. With a values-based approach that encompasses integrity, operating excellence, care for people and courageous leadership, our purpose is to Turn Raw Potential into Real Progress. Since developing the process that made aluminum an affordable and vital part of modern life, our talented Alcoans have developed breakthrough innovations and best practices that have led to greater efficiency, safety, sustainability and stronger communities wherever we operate.

Dissemination of Company Information

Alcoa Corporation intends to make future announcements regarding company developments and financial performance through its website at www.alcoa.com, as well as through press releases, filings with the Securities and Exchange Commission, conference calls and webcasts.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230330005776/en/

Investor Contact:

James Dwyer

412-992-5450

James.Dwyer@alcoa.com

Media Contact:

Jim Beck

412-315-2909

Jim.Beck@alcoa.com

Source: Alcoa

FAQ

What caused the temporary reduction in Alcoa's production?

The reduction was due to a failure in the two-belt conveyance system at Alumar, impacting material unloading.

How long will the production reduction at Alcoa last?

The production reduction is expected to last approximately 10 days.

What is the current production capacity of Alcoa's Alumar refinery?

The Alumar refinery has a nameplate capacity of 3,860,000 metric tons per year.

What percentage of the Alumar refinery does Alcoa own?

Alcoa owns a 14.4% stake in the Alumar refinery.

When did the conveyance system failure occur at Alcoa?

The conveyance system failure occurred on March 25, 2023.