South32, Alcoa To Restart Alumar Aluminum Smelter in Brazil

SEATTLE (Scrap Monster): Australia-based South32 Ltd, along with its joint venture partner Alcoa Corp. declared an investment of $70 million aimed at restarting operations at its Alumar aluminum smelter in Brazil. It must be noted that the smelter has been on care and maintenance since 2015.

South32 expects first production from the smelter during June quarter this year. The company expects an output of 5,000 tonnes in 2022 from its share of operations. The output will be further boosted to 140,000 tonnes next year. Also, South32’s 40% share of the smelter will be fully powered with renewable energy as it restarts over 2022 and 2023.

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Commenting on the decision, Graham Kerr, Chief Executive Officer, South32 said that it foresees strong long-term market fundamentals for aluminum metal. The proposed investment will meaningfully increase its share of metal produced utilising green energy, he added.

The Alumar smelter is jointly owned by Alcoa’s wholly owned subsidiary and South32, which owns 60% and 40% of the smelting and casting capacity respectively. The plant’s total operating capacity is estimated at around 447,000 metric tons, which it expects to reach by March 2023 quarter.