Alcoa (NYSE:AA) says it plans to restart 268K metric tons/year of aluminum capacity at the Alumar smelter in Brazil, which has been shut since 2015.
Alcoa it will immediately begin the process to restart the idle capacity, expecting the first molten metal in Q2 2022, with full capacity expected in next year's Q4; by 2024, the company expects the smelter will be fully powered with 100% renewable energy.
The smelter, which is jointly owned by a subsidiary of Alcoa and South32 (OTCPK:SOUHY), has three potlines with a total operating capacity of 447K metric tons, which includes Alcoa's share of 268K mt.
Alcoa projects the restart will cost ~$75M, including $10M in capital spending.
With the planned restart, Alcoa will have 80% of its 2.99M mt of operating global aluminum smelting capacity.