Alcoa Announced Restart of Idled Aluminum Smelter

SEATTLE (Scrap Monster): Alcoa Corporation announced plans to partially restart the idled capacity at the Alumar aluminum smelter in Brazil. The initial plan is to restart 268,000 metric tons per year of the capacity. It must be noted that the capacity has been fully curtailed since 2015.

According to company press release, the restart process will commence immediately. Alcoa expects to produce first molten metal in Q2 next year. The full 268,000 mtpy of capacity is expected to become operational by Q4 2022. As per plan, the smelter will be fully powered with renewable energy by 2024.

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The Alumar smelter is jointly owned by Alcoa Aluminio- Alcoa’s wholly owned subsidiary and South32, which owns 60% and 40% of the smelting and casting capacity respectively. The plant’s total operating capacity is estimated at around 447,000 metric tons.

The restart process is projected to cost around $75 million. This includes approximately $10 million in capital expenses. The restart will make Alcoa’s operating aluminum smelting capacity to around 80%, which in turn will provide significant boost to its global competitiveness. The restart process will see hiring of more than 750 employees, the press release said.