Photo by: Bloomberg
PERTH (miningweekly.com) – Diversified miner South32 and its joint venture (JV) partner Alcoa will restart the Alumar aluminium smelter, in Brazil.
Brazil Aluminium has been on care and maintenance since 2015, and South32 is expected to invest $70-million across 2022 and 2023 to support its share of restart expenditure.
First production from the smelter is expected in the June quarter of this year, and at full capacity, the three potlines will produce 447 000 t/y. Full production is targeted for the March quarter of next year.
South32 on Thursday said that once at full capacity, the company’s group-wide annualised equity share of aluminium production is expected to lift by 16%, or 179 000 t, to 1.2-million tonnes.
South32’s 40% share of Brazil Aluminium will be powered by 100% cost efficient renewable power, placing the smelter in the second quartile of the global aluminium site cost curve.
“We are excited to participate in the restart of the Alumar smelter using 100% renewable power. With the smelter benefitting from existing infrastructure, access to our own supply of alumina and long-term green energy sources, we expect our investment to deliver strong returns through the cycle,” said South32 CEO Graham Kerr.
“With this decision we continue to make substantial progress in reshaping our portfolio, increasing our exposure to the base metals required for the critical transition to a low carbon future.”
Brazil Alumina comprises South32’s 14.8% interest in the Mineração Rio do Norte bauxite mine and a 36% interest in the Alumar alumina refinery.