Alcoa 2010 Annual Report Download - page 13

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Bauxite Interests
Aluminum is one of the most plentiful elements in the earth’s crust. Aluminum is produced primarily from bauxite, an
ore containing aluminum in the form of aluminum oxide, commonly referred to as alumina. Aluminum is made by
extracting alumina from bauxite and then removing oxygen from the alumina. Alcoa processes most of the bauxite that
it mines into alumina. The company obtains bauxite from its own resources and from those belonging to the AWAC
enterprise, located in the countries listed in the chart below, as well as pursuant to both long-term and short-term
contracts and mining leases. In 2010, Alcoa consumed 38.3 million metric tons (mt) of bauxite from AWAC and its
own resources, 6.8 million mt from related third parties and 1.7 million mt from unrelated third parties. Alcoa’s present
sources of bauxite are sufficient to meet the forecasted requirements of its alumina refining operations for the
foreseeable future. The following table provides information regarding the company’s bauxite interests:
Alcoa Active Bauxite Interests1
Country Project Owners’ Mining Rights (% Entitlement)
Expiration
Date of
Mining
Rights
Australia Darling Range Mines Alcoa of Australia Limited (AofA)2(100%) 2045
Brazil Poços de Caldas Alcoa Alumínio S.A. (Alumínio)3(100%) 20204
Trombetas Mineração Rio do Norte S.A. (MRN)5(100%) 20464
Juruti6Alcoa World Alumina Brasil Ltda. (AWA Brasil)2(100%) 21004
Guinea Boké Compagnie des Bauxites de Guinée (CBG)7(100%) 20388
Jamaica Clarendon/Manchester
Plateau
Alcoa Minerals of Jamaica, L.L.C.2(55%)
Clarendon Alumina Production Ltd.9(45%) 2042
Suriname Caramacca Suriname Aluminum Company, L.L.C. (Suralco)2(55%)
N.V. Alcoa Minerals of Suriname (AMS)10 (45%) 201211
Coermotibo Suralco (55%)
AMS10 (45%) 203311
Kaimangrasi Suralco (55%)
AMS10 (45%) 203311
Klaverblad Suralco (55%)
AMS10 (45%) 203311
1Alcoa also has interests at the following locations that are bauxite resources which do not currently produce bauxite:
Cape Bougainville and Mitchell Plateau in Australia, and Brownsberg, Coermotibo DS, Lely Mountains, and Nassau, all
in eastern Suriname.
2This entity is part of the AWAC group of companies and is owned 60% by Alcoa and 40% by Alumina Limited.
3Alumínio is owned 100% by Alcoa.
4Brazilian mineral legislation does not establish the duration of mining concessions. The concession remains in force
until the exhaustion of the deposit. The company estimates that (i) the concessions at Poços de Caldas will last at least
until 2020, (ii) the concessions at Trombetas will last until 2046 and (iii) the concessions at Juruti will last until 2100.
Depending, however, on actual and future needs, the rate at which the deposits are explored and government approval is
obtained, the concessions may be extended to (or expire at) a later (or an earlier) date.
5Alumínio holds an 8.125% interest, Alcoa World Alumina Brasil Ltda. (formerly Abalco S.A., which merged with Alcoa
World Alumina Brasil Ltda. in December 2008) (AWA Brasil) holds a 4.375% interest and Alcoa World Alumina LLC
(AWA LLC) holds a 5% interest in MRN. AWA Brasil and AWA LLC are both part of the AWAC group of companies
and are owned 60% by Alcoa and 40% by Alumina Limited. MRN is jointly owned with affiliates of Rio Tinto Alcan
Inc., Companhia Brasileira de Alumínio, Companhia Vale do Rio Doce, BHP Billiton Plc (BHP Billiton) and Norsk
Hydro. Alumínio, AWA Brasil, and AWA LLC purchase bauxite from MRN under long-term supply contracts.
5