Alcoa 2009 Annual Report Download - page 14

6In September 2009, development of a new bauxite mine was completed in Juruti, state of Para in northern Brazil. The
mine is fully operational and expected to produce 2.6 million mt per year (mtpy) of bauxite.
7This entity is part of the AWAC group of companies and is owned 60% by Alcoa and 40% by Alumina Limited.
8AWA LLC owns a 45% interest in Halco (Mining), Inc. Halco owns 100% of Boké Investment Company, a Delaware
company, which owns 51% of CBG. The Guinean Government owns 49% of CBG, which has the exclusive right
through 2038 to develop and mine bauxite in certain areas within a 10,000 square-mile concession in northwestern
Guinea.
9AWA LLC has a bauxite purchase contract with CBG that will provide Alcoa with bauxite through 2011.
10 Clarendon Alumina Production Ltd. is a wholly-owned entity of the Government of Jamaica.
11 In July 2009, AWA LLC acquired the BHP Billiton subsidiary that was a 45% joint venture partner in the Surinamese
bauxite mining and alumina refining joint ventures. Prior to the AWA LLC buy out, BHP Billiton’s subsidiary held a
45% interest to Suralco’s 55% interest in the two joint ventures. After the acquisition of the BHP Billiton subsidiary, its
name was changed to N.V. Alcoa Minerals of Suriname (AMS).
12 While mining rights at Caramacca extend until 2012 and rights at the remaining Suriname locations extend until 2033, it
is likely that all Suriname bauxite resources will be exhausted within the next several years. Alcoa is evaluating
alternative sources of bauxite, including resources from Suralco’s concession in eastern Suriname such as the Nassau
plateau.
Kingdom of Saudi Arabia Joint Venture
In December 2009, Alcoa and Saudi Arabian Mining Company (Ma’aden) entered into an agreement setting forth the
terms of a joint venture between them to develop a fully integrated aluminum industry in the Kingdom of Saudi Arabia.
In its initial phases, the joint venture plans to develop a fully integrated industrial complex that will include a bauxite
mine with an initial capacity of 4.0 million mt per year (mtpy); an alumina refinery with an initial capacity of
1.8 million mtpy; an aluminum smelter with an initial capacity of ingot, slab and billet of 740,000 mtpy; and a rolling
mill, with initial hot-mill capacity of between 250,000 and 460,000 mtpy. The mill is expected to focus initially on the
production of sheet, end and tab stock for the manufacture of aluminum cans, and potentially other products to serve
the construction industry.
The refinery, smelter and rolling mill will be established within the new industrial zone of Raz Az Zawr on the east
coast of the Kingdom of Saudi Arabia. First production from the aluminum smelter and rolling mill is anticipated in
2013, and first production from the mine and refinery is expected in 2014.
Capital investment is expected to be approximately $10.8 billion (SAR 40.5 billion) subject to the completion of
detailed feasibility studies and environmental impact assessments. Ma’aden will own a 60% interest in the joint
venture. Alcoa will own a 40% interest through a special purpose vehicle (SPV) controlled by Alcoa. Through this
arrangement, Alcoa will have a 20% economic interest in the joint venture. Each of Alcoa and the partners in the SPV
are expected to invest approximately $900 million over a four-year period. For additional information regarding the
joint venture, see the Equity Investments section of Note I to the Consolidated Financial Statements in Part II, Item 8.
(Financial Statements and Supplementary Data).
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