Alcoa 2012 Annual Report Download - page 18

Download and view the complete annual report

Please find page 18 of the 2012 Alcoa annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 200

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200

7Alcoa World Alumina LLC (AWA LLC) owns 100% of N.V. Alcoa Minerals of Suriname (AMS). AWA LLC is part of
the AWAC group of companies and is owned 60% by Alcoa and 40% by Alumina Limited.
8Mining rights expired for the Caramacca area. The mining rights in the Onverdacht and Coermotibo areas where Suralco
has active mines extend until 2033. Bauxite within these areas will likely be exhausted in the next few years. Alcoa is
actively exploring and evaluating alternative sources of bauxite in Suriname. A feasibility study relating to the
development of a mine at the Nassau Plateau is in progress.
9Alumínio holds an 8.58% total interest, AWA Brasil (formerly Abalco S.A., which merged with Alcoa World Alumina
Brasil Ltda. in December 2008) holds a 4.62% total interest and AWA LLC holds a 5% total interest in MRN. 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.
10 AWA 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.
11 AWA LLC has a bauxite purchase contract with CBG that expires in 2029. Before that expiration date, AWA LLC
expects to negotiate an extension of the contract as CBG will have concession rights until 2038. The CBG concession
can be renewed beyond 2038 by agreement of the Government of Guinea and CBG should more time be required to
commercialize the remaining economic bauxite within the concession.
12 Guinea—Boké: CBG prices bauxite and plans the mine based on the bauxite qualities of total alumina (TAl2O3) and total
silica (TSiO2).
13 Ma’aden Bauxite & Alumina Company is a joint venture owned by Saudi Arabian Mining Company (Ma’aden) (74.9%)
and AWA Saudi Limited (25.1%). AWA Saudi Limited is part of the AWAC group of companies and is owned 60% by
Alcoa and 40% by Alumina Limited.
14 Kingdom of Saudi Arabia—Al Ba’itha: Bauxite reserves and mine plans are based on the bauxite qualities of total
available alumina (TAA) and total silica (TSiO2).
Qualifying statements relating to the table above:
Australia—Darling Range Mines: Huntly and Willowdale are the two active mines in the Darling Range of Western
Australia. The mineral lease issued by the State of Western Australia to Alcoa is known as ML1SA and its term
extends to 2045. The lease can be renewed beyond 2045. The declared reserves have been estimated to the end of
December 2012. The amount of reserves reflect the total AWAC share. Additional resources are routinely upgraded by
additional exploration and development drilling to reserve status. The Huntly and Willowdale mines supply bauxite to
three local AWAC alumina refineries.
Brazil—Poços de Caldas: Declared reserves are as of the end of October 2012. Tonnage is total Alcoa share.
Additional resources are being upgraded to reserves as needed.
Brazil—Juruti RN102, RN103, RN104: Declared reserves are as of November 1, 2012. Declared reserves are total
AWAC share. Declared reserve tonnages and the annual production tonnage (estimate to the end of 2012) are washed
product tonnages. The Juruti mine’s operating license is periodically renewed and the next renewal is in 2014.
Jamaica—Jamalco: Declared reserves are as of October 2012. The declared reserve and annual production tonnages
are AWAC share only (55%). Declared reserves are in the following areas: Harmon’s Valley, South Manchester, North
Manchester and Porus/Victoria. Current ore mining is in Harmon’s Valley and South Manchester with a small amount
of ore from a test stockpile in North Manchester. The location has scheduled probable reserves from North Manchester
and Porus/Victoria within the 2013-2016 period. Additional resources are in the process of being upgraded to reserves.
7