Alcoa 2003 Annual Report Download - page 42

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Obligations for Investing Activities
The company typically spends approximately $1,000 –$1,400annually
for capital expenditures, primarily related to facility expansion,
health and safety, and environmental control. Alcoa expects annual
capital expenditures in the future will be within this range.
In 2003 and 2002, Alcoa made announcements indicating its
intention to participate in several significant expansion projects.
These projects include the expansion ofaluminarefineriesat
Pinjarra, Australia and Suriname,SouthAmerica; theconstruction
of a smelter in Iceland; the investment in and future expansion
of a smelter in Bahrain, as well as a smelter joint venture project
in China; the expansion and upgrade of smelters in Canada;
the investment in several hydroelectric power construction projects
in Brazil; and the development of a lignite mine in Texas to fuel
the adjacent power plant and smelter. These projects are in various
stages of development and, dependingonbusiness and/orregulatory
circumstances, may not be completed. The total anticipated costs
40
of these projects, if all were completed, is approximately $4,000
and will require funding over a number of years through 2010. The
amounts included in the table above for capital projects represent the
amounts which have been approved by management for these
projects as of December 31, 2003. Funding levels vary in future years
based onanticipatedconstruction schedules of the projects.
It is anticipated that significantexpansionprojects will be funded
through various sources, including cash provided from operations,
proceeds from the divestitures of certain businesses, borrowing
activities, and other structured financing activities such as project
financing. In addition, Alcoa also announced its intention to evaluate
other investments that may result in material financing requirements
if ultimately committed.Alcoa anticipates that financing required
to execute all of these investments will be readily available to it over
the time frame required.