Alcoa greenlights Australia gallium plant with US, Japan and domestic backing
Bauxite and aluminium producer Alcoa Corporation said on Tuesday it has reached a final investment decision to set up a gallium plant at its Wagerup alumina refinery in Western Australia, with backing from the Australian, Japanese and US governments and industry partners.
The US and Australian governments had said in October they would support Alcoa's expansion plans in the region, a few months after the company signed a joint development agreement with a venture between the Japanese government and Sojitz Corporation.
The US-based aluminium producer plans to construct and operate the plant, which could provide up to 10% of the global gallium supply.
"This final investment decision reflects a shared commitment by governments and industry to strengthen critical mineral supply chains among the partners,” said Alcoa president and CEO William Oplinger.
Construction activities are expected to begin after final site preparations, the company added.
Gallium, a raw material used in the production of alumina, is a critical mineral for the technology sector, especially the semiconductor and defense industries.
Earlier this month, Alcoa agreed to buy the bulk of South32's aluminium portfolio for an implied enterprise value of up to $5.6-billion to expand its access to upstream assets, including bauxite, alumina and aluminium assets across Brazil, South Africa and Western Australia.
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