Alcoa 1997 Annual Report Download - page 11

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9
Market Report: Alumina
Rising Demand,
Expanding Facilities
Refining Capacity Growing.AWAC
restarted its alumina refinery on St. Croix,
U.S. Virgin Islands, which had been
idle since 1994. Acquired in 1995 from
the Virgin Islands
Alumina Corporation,
the refinery has a
capacity of 600,000 mt
per year. On the other
side of the globe, AWAC
began a 440,000 mt
per year expansion of
the Wagerup refinery
in Western Australia, scheduled to come
onstream in 1999. Alcoa’s worldwide
capacity for alumina is sold out for
1998, including the new production from
St. Croix. AWAC is owned by Alcoa and
WMC Ltd.
Alcoa World Alumina & Chemicals (AWAC) has moved to expand
production in response to strong customer demand.
China Shipments Begin. Alumina
deliveries have commenced under an
historic 30-year contract with the govern-
ment-owned aluminum company in
China. The first shipment — 35,000 mt of
alumina — by AWAC to China National
Nonferrous Metals Industry Corp. (CNNC)
arrived on July 30 aboard the Pisces
Explorer. Sino Mining, a unit of CNNC,
signed an agreement with Alcoa last year
to buy 400,000 mt per year of alumina
for 30 years, with the option to increase
this amount in the future.
Alcoa Executive Vice President
Robert F. Slagle attended the ribbon-
cutting ceremony along with representa-
tives from CNNC and Sino Mining and
leaders from Qingdao City, where the
shipment arrived.
“If this arrangement achieves its full
potential,” said Slagle, “as I believe it will,
the equivalent of more than 800 similar
shipments of alumina will arrive at
Chinese ports during the next 30 years.”