Alcoa 2010 Annual Report Download - page 14

6In September 2009, development of a new bauxite mine was completed in Juruti, state of Para in northern Brazil. The
mine is fully operational and produced 2.6 million mt in 2010. In the future, it is expected to produce 3.3 million mt per
year (mtpy) of bauxite.
7AWA 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.
8AWA LLC has a bauxite purchase contract with CBG that will provide Alcoa with bauxite through 2026.
9Clarendon Alumina Production Ltd. is wholly-owned by the Government of Jamaica.
10 In July 2009, AWA LLC acquired the BHP Billiton subsidiary that was a 45% joint venture partner in the Surinamese
bauxite mining and alumina refining joint ventures. Prior to the AWA LLC buy out, BHP Billiton’s subsidiary held a
45% interest to Suralco’s 55% interest in the two joint ventures. After the acquisition of the BHP Billiton subsidiary, its
name was changed to 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.
11 While mining rights at Caramacca currently extend until 2012 (subject to Suriname government approval of a pending
five year extension request), and rights at the remaining Suriname locations extend until 2033, it is likely that all
Suriname current bauxite resources will be exhausted within the next several years. Alcoa is actively exploring and
evaluating alternative sources of bauxite, including resources from Suralco’s concession in eastern Suriname such as the
Nassau plateau. Approximately 800,000 mt of bauxite from Suralco’s concession were added to current resources in
2010 as a result.
Kingdom of Saudi Arabia Joint Venture
In December 2009, Alcoa and Saudi Arabian Mining Company (Ma’aden) entered into an agreement setting forth the
terms of a joint venture between them to develop a fully integrated aluminum complex in the Kingdom of Saudi
Arabia. In its initial phases, the joint venture plans to develop a fully integrated industrial complex that will include a
bauxite mine with an initial capacity of 4 million mtpy; an alumina refinery with an initial capacity of 1.8 million
mtpy; an aluminum smelter with an initial capacity of ingot, slab and billet of 740,000 mtpy; and a rolling mill with
initial capacity of 380,000 mtpy. The mill is expected to focus initially on the production of sheet, end and tab stock for
the manufacture of aluminum cans, and potentially other products to serve the construction, automotive, and other
industries.
The refinery, smelter and rolling mill will be established within the new industrial zone of Ras Az Zawr on the east
coast of the Kingdom of Saudi Arabia. First production from the aluminum smelter and rolling mill is anticipated in
2013, and first production from the mine and refinery is expected in 2014.
Total capital investment is expected to be approximately $10.8 billion (SAR 40.5 billion). Ma’aden owns a 74.9%
interest in the joint venture. Alcoa owns a 25.1% interest in the smelter and rolling mill, with the AWAC group having
a 25.1% interest in the mine and refinery. For additional information regarding the joint venture, see the Equity
Investments section of Note I to the Consolidated Financial Statements in Part II, Item 8. (Financial Statements and
Supplementary Data).
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