Alcoa 2011 Annual Report Download - page 21

is warranted. If completed, it is expected that the smelter would have an initial operating capacity of 360,000 mtpy with
the potential for future increase. In 2011, the MOU was further extended to enable determination of feasibility.
In 2007, Alcoa and Greenland Home Rule Government entered into an MOU regarding cooperation on a feasibility
study for an aluminum smelter with a 360,000 mtpy capacity in Greenland. The MOU also encompasses a
hydroelectric power system and related infrastructure improvements, including a port. In 2008, Greenland’s parliament
allocated funding to support the second phase of joint studies with Alcoa and endorsed that the smelter be located at
Maniitsoq. In 2010, Alcoa and the Greenland Home Rule Government revised the completion dates for feasibility
studies associated with development of the proposed integrated hydro system and aluminum smelter at Maniitsoq to
enable more detailed consideration of aspects of the project related to construction and provision of energy and to
allow the Greenland parliament sufficient time to deliberate and vote on critical aspects of national legislation
concerning the project. The feasibility studies were completed in the fourth quarter of 2011. A Greenland
Parliamentary vote to allow continued studies for construction and provision of energy is scheduled for late 2012.
In the fourth quarter of 2011, Alcoa and the Government of Angola, through the ministries of Energy, Water &
Geology, Mines and Industry, entered into an exclusive MOU regarding cooperation on a feasibility study for an
aluminum smelter in Angola with a 720,000 mtpy capacity. The MOU also encompasses a hydroelectric power system
and power transmission facilities to be built by the Government and resulting long term purchase power agreement.
Flat-Rolled Products Facilities
The principal business of the company’s Flat-Rolled Products segment is the production and sale of aluminum plate,
sheet and foil. This segment includes rigid container sheet, which is sold directly to customers in the packaging and
consumer market. This segment also includes sheet and plate used in the aerospace, automotive, commercial
transportation, and building and construction markets.
As noted above, Alcoa and Ma’aden entered into an agreement that involves development of a rolling mill in the
Kingdom of Saudi Arabia. In 2010, the joint venture entity, Ma’aden Rolling Company signed project financing for its
rolling mill and broke ground on the construction of the mill. Initial capacity is approximately 380,000 mtpy. First
production is expected in 2013.
As discussed above, in 2011, Alcoa and the CPI signed an MOU followed by a Letter of Intent that provides a
framework for the creation of a joint venture which includes a focus on producing high-end fabricated aluminum
products in China. This venture will leverage Alcoa’s and CPI’s existing footprint and capabilities.
Although the company completed the sale of substantially all of its Global Foil Business in 2009, the company
continues to manufacture foil for the end-user market in Itapissuma, Brazil.
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