Alcoa 2009 Annual Report Download - page 16

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10 In May 2009, the Suralco alumina refinery announced curtailment of 870,000 mtpy. The decision was made to protect
the long-term viability of the industry in Suriname. The curtailment was aimed at deferring further bauxite extraction
until additional in-country bauxite resources are developed and market conditions for alumina improve.
11 Reductions in production at Point Comfort resulted mostly from the effects of curtailments initiated in late 2008 through
early 2009, as a result of overall market conditions. The reductions included approximately 1,500,000 mtpy curtailment.
Of that amount, 800,000 mtpy remained curtailed as of December 31, 2009.
As noted above, Alcoa and Ma’aden entered into an agreement that involves the development of an alumina refinery in
the Kingdom of Saudi Arabia. Initial capacity of the refinery is expected to be 1.8 million mtpy. First production is
expected in 2014.
Investments in the company’s Brazilian upstream operations continue. The 2.1 million mtpy expansion of the Alumar
consortium alumina refinery in São Luís, Maranhão, has increased the refinery’s nameplate capacity to approximately
3.5 million mtpy, with Alcoa’s share of such capacity more than doubling to 1.89 million mtpy based on its 54%
ownership stake through Alumínio and AWAC. Construction on the refinery was finalized at the end of 2009. The
company is continuing with its modernization of the Poços de Caldas aluminum smelter.
In November 2005, Alcoa World Alumina LLC (AWA LLC) and Rio Tinto Alcan Inc. signed a Basic Agreement with
the Government of Guinea that sets forth the framework for development of a 1.5 million mtpy alumina refinery in
Guinea. In 2006, the Basic Agreement was approved by the Guinean National Assembly and was promulgated into
law. The Basic Agreement was set to expire in November 2008, but has been extended to November 2010.
Pre-feasibility studies were completed in 2008. Further project activities may be considered in 2010, but execution is
dependent upon global economic conditions and conditions within Guinea.
In September 2006, Alcoa received environmental approval from the Government of Western Australia for expansion
of the Wagerup alumina refinery to a maximum capacity of 4.7 million mtpy, a potential increase of over 2 million
mtpy. This approval included environmental conditions that must be satisfied before Alcoa can seek construction
approval for the project. The project was suspended in November 2008 due to global economic conditions and the
unavailability of a secure long-term energy supply in Western Australia.
In 2008, AWAC signed a cooperation agreement with Vietnam National Coal-Minerals Industries Group (Vinacomin)
in which they agreed to conduct a joint feasibility study of the Gia Nghia bauxite mine and alumina refinery project
located in Dak Nong Province in Vietnam’s Central Highlands, with first stage capacity expected to be between 1.0
and 1.5 million mtpy. The cooperation between AWAC and Vinacomin on Gia Nghia is subject to approval by the
Government of Vietnam. If established, the Gia Nghia venture is expected to be 51% owned by Vinacomin, 40% by
AWAC and 9% by others.
8