Alcoa 2015 Annual Report Download - page 33

Kingdom of Saudi Arabia Joint Venture
In December 2009, Alcoa and Saudi Arabian Mining Company (Ma’aden) entered into a joint venture to develop a
fully integrated aluminum complex in the Kingdom of Saudi Arabia. In its initial phases, the complex includes a
bauxite mine with an initial capacity of 4 million bdmt per year; an alumina refinery with an initial capacity of
1.8 million mt per year (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 will produce a variety of sheet products.
The refinery, smelter and rolling mill are located within the Ras Al Khair industrial zone on the east coast of the
Kingdom of Saudi Arabia.
The smelter and refinery are fully operational. The mine construction was completed in the second quarter of 2015 and
ramp up of operations is proceeding as planned.
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 AWAC holding 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).
Glossary of Bauxite Mining Related Terms
Term Abbreviation Definition
Alcoa Ore Reserves Committee AORC The group within Alcoa, which is comprised of Alcoa
geologists and engineers, that specifies the guidelines by
which bauxite reserves and resources are classified. These
guidelines are used by Alcoa managed mines.
Alumina Al2O3A compound of aluminum and oxygen. Alumina is extracted
from bauxite using the Bayer Process. Alumina is a raw
material for smelters to produce aluminum metal.
AORC Guidelines The Alcoa guidelines used by Alcoa managed mines to
classify reserves and resources. These guidelines are issued by
the Alcoa Ore Reserves Committee.
Available alumina content AvAl2O3The amount of alumina extractable from bauxite using the
Bayer Process.
Bauxite The principal raw material (rock) used to produce alumina.
Bauxite is refined using the Bayer Process to extract alumina.
Bayer Process The principal industrial means of refining bauxite to produce
alumina.
Bone dry metric ton Bdmt Tonnage reported on a zero moisture basis.
Coermotibo The mining area in Suriname containing the deposits of
Bushman Hill, CBO Explo, Lost Hill and Remnant. These
mines have been curtailed.
Competent Persons Report CP Report Joint Ore Reserves Committee (JORC) Code compliant
Reserves and Resources Report.
Juruti RN101, RN102, RN103,
RN104, #34 Mineral claim areas in Brazil associated with the Juruti mine, within which Alcoa has mining operating licenses issued by
the state.
ML1SA The Mineral lease issued by the State of Western Australia to
Alcoa. Alcoa mines located at Huntly and Willowdale operate
within ML1SA.
Onverdacht The mining area in Suriname containing the deposits of
Kaaimangrasi, Klaverblad, Lelydorp1 and Sumau 1. These
mines have been curtailed.
9