Alcoa Signs Bauxite Supply Contracts Worth More Than $350 Million
OREANDA-NEWS. Alcoa (NYSE:AA), the world’s largest bauxite miner, today 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 will supply bauxite to external customers from three of its global mines as it continues to successfully 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 of Alcoa Mining. “Our strategy is to profitably grow our third-party bauxite sales and these contracts demonstrate that we are well on track.”
Alcoa is the world’s largest bauxite miner, with 45.3 million bone dry metric tons of production in 2015. Alcoa 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 percent by Alcoa and 40 percent by Alumina Limited of Australia.
As previously announced, Alcoa will separate into two, industry-leading 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.