Alcoa 2013 Annual Report Download - page 35

For each metric ton of alumina produced, Alcoa consumes the following amounts of the identified raw material inputs
(approximate range across relevant facilities):
Raw Material Units Consumption per MT of Alumina
Bauxite mt 2.2 – 3.8
Caustic soda kg 50 – 120
Electricity kWh 180 – 270 (global average of 230)
Fuel oil and natural gas GJ 6.5 – 12
Lime (CaO) kg 7 – 60
For each metric ton of aluminum produced, Alcoa consumes the following amounts of the identified raw material
inputs (approximate range across relevant facilities):
Raw Material Units Consumption per MT of Aluminum
Alumina mt 1.92 ±0.02
Aluminum fluoride kg 16.5 ±6.5
Calcined petroleum coke mt 0.37 ±0.02
Cathode blocks mt 0.006 ±0.002
Electricity kWh 12900 – 17000
Liquid pitch mt 0.10 ±0.03
Natural gas mcf 3.5 ±1.5
Explanatory Note: Certain aluminum produced by Alcoa also includes alloying materials. Because of the number of
different types of elements that can be used to produce Alcoa’s various alloys, providing a range of such elements
would not be meaningful. With the exception of a very small number of internally used products, Alcoa produces its
alloys in adherence to an Aluminum Association standard. The Aluminum Association, of which Alcoa is an active
member, uses a specific designation system to identify alloy types. In general, each alloy type has a major alloying
element other than aluminum but will also have other constituents as well, but of lesser amounts.
Energy
Employing the Bayer process, Alcoa refines alumina from bauxite ore. Alcoa then produces aluminum from the
alumina by an electrolytic process requiring substantial amounts of electric power. Energy accounts for approximately
25% of the Company’s total alumina refining production costs. Electric power accounts for approximately 26% of the
Company’s primary aluminum production costs. Alcoa generates approximately 20% of the power used at its smelters
worldwide and generally purchases the remainder under long-term arrangements. The paragraphs below summarize the
sources of power and the long-term power arrangements for Alcoa’s smelters and refineries.
North America – Electricity
The Deschambault, Baie Comeau, and Bécancour smelters in Québec purchase electricity under existing contracts that
run through 2015, which will be followed by long-term contracts with Hydro-Québec first executed in December 2008,
revised twice, in 2012 and 2013, and expiring in 2040, provided that Alcoa completes the modernization of the Baie
Comeau smelter by September 2019. The smelter located in Baie Comeau, Québec completed the permanent closure of
its two remaining Soderberg potlines in September 2013, consequently reducing its annual production by 105,000
metric tons. Following this curtailment, the Baie-Comeau smelter now purchases approximately 74% of its power
needs under the Hydro-Québec contract, and the remainder from a 40% owned hydroelectric generating company,
Manicougan Power Limited Partnership. Furthermore, in October 2013, Alcoa provided Hydro-Québec with advanced
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