Alcoa 2010 Annual Report Download - page 19

Alcoa and the Government of Iceland began detailed feasibility studies for the development of a 250,000 mtpy
aluminum smelter at Bakki near Húsavík in north Iceland in 2006. Alcoa, the National Power Company (Landsvirkjun)
and the National Transmission Company (Landsnet) have completed an Environmental Impact Assessment (EIA) and a
joint EIA for the necessary smelter and power projects in cooperation with the Municipality. The EIAs have been
approved. Alcoa and Landsvirkjun continue to evaluate whether a smelter project can be economically feasible in
North Iceland.
In December 2008, Alcoa and the Brunei Economic Development Board agreed to further extend an existing
Memorandum of Understanding (MOU) to enable more detailed studies into the feasibility of establishing a modern,
gas-powered aluminum smelter in Brunei Darussalam. The MOU extends a memorandum signed originally in 2003.
Phase one of the feasibility study will determine scope and dimensions of the proposed facility, power-delivery
strategy, location, as well as an associated port and infrastructure. At completion of phase one, the parties will
determine whether a more detailed phase two study is warranted. If completed, it is expected that the smelter would
have an initial operating capacity of 360,000 mtpy with the potential for future increase. In January 2010, the MOU
was further extended to enable determination of feasibility to continue.
In 2007, Alcoa and Greenland Home Rule Government entered into an MOU regarding cooperation on a feasibility
study for an aluminum smelter with a 360,000 mtpy capacity in Greenland. The MOU also encompasses a
hydroelectric power system and related infrastructure improvements, including a port. In 2008, Greenland’s parliament
allocated funding to support the second phase of joint studies with Alcoa and endorsed that the smelter be located at
Maniitsoq. In 2010, Alcoa and the Greenland Home Rule Government revised the completion dates for feasibility
studies associated with development of the proposed integrated hydro system and aluminum smelter at Maniitsoq to
enable more detailed consideration of aspects of the project related to construction and provision of energy and to
allow the Greenland parliament sufficient time to deliberate and vote on critical aspects of national legislation
concerning the project. The feasibility studies are now scheduled for completion towards the end of 2011.
Flat-Rolled Products Facilities
The principal business of the company’s Flat-Rolled Products segment is the production and sale of aluminum plate,
sheet and foil. This segment includes rigid container sheet, which is sold directly to customers in the packaging and
consumer market. This segment also includes sheet and plate used in the transportation, building and construction and
distribution markets.
As noted above, Alcoa and Ma’aden entered into an agreement that involves development of a rolling mill in the
Kingdom of Saudi Arabia. The joint venture entity, Ma’aden Rolling Company, has signed project financing for its
rolling mill and broken ground on the construction of the mill. Initial capacity is approximately 380,000 mtpy. First
production is expected in 2013.
Although the company completed the sale of its Global Foil Business in 2009, the company continues to manufacture
foil in Itapissuma, Brazil and Alicante, Spain.
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