While Alcoa has experienced another decrease in production and shipments for the September 2024 quarter, the company maintained strong revenue following its acquisition of Alumina Limited.
Alumina production decreased four per cent to 2.44 million tonnes (Mt) compared to the previous quarter’s 2.53Mt. Alcoa credited the reduction to the full curtailment of the Kwinana refinery in Western Australia, which was completed in June.
As a result, alumina third-party shipments decreased by 9 per cent due to decreased trading.
However, aluminium production increased by three per cent to 559,000 tonnes due to continued progress made on the Alumar smelter restart in Brazil. Aluminium shipments decreased by six per cent due to decreased trading and the timing of shipments.
Revenue remained steady at $2.9 billion, with alumina third-party revenue increasing by nine per cent on a 22 per cent increase in average realised third-party price.
Alcoa also progressed two key mining approvals in Myara North and Holyoake in WA, with the company aiming to secure the approvals by the first quarter of 2026.
Chief among Alcoa’s achievements during the September 2024 quarter was finalising its acquisition of Alumina Limited for $2.8 billion.
“During the third quarter, we maintained our pace of delivering on strategic actions,” Alcoa president and chief executive officer (CEO) William F. Oplinger said.
“We gained flexibility after closing the Alumina Limited acquisition and announced the sale of our interest in the Ma’aden joint ventures.
“Positive markets and our focus on continuous improvement led to stronger results for the third quarter, while we continue to execute initiatives to further enhance our operations.”
Alcoa is also progressing towards entering a strategic cooperation agreement with IGNIS Equity Holdings (IGNIS EQT) to support the continued operation of the San Ciprián operations in Spain.
Under the proposed agreement, Alcoa will contribute €75 million ($122 million) and IGNIS EQT would make an initial investment of €25 million ($40.7 million) to fund the operations.
Alcoa will remain the managing operator of San Ciprián and IGNIS EQT will hold 25 per cent ownership. Up to €100 million ($162.9 million) will also be funded by Alcoa as required for operations.
If further funding is required, both partners must agree and the funding will be shared 75:25 between Alcoa and IGNIS EQT respectively.
“By partnering with IGNIS EQT, we will leverage our experience and expertise, and, along with the necessary cooperation from stakeholders, improve the long-term outlook for San Ciprián,” Oplinger said.
IGNIS EQT CEO Antonio Sieira said the company is delighted to work with Alcoa and to progress the strategic partnership.
“This agreement would allow for a viable solution for the San Ciprián plant and its workers,” Sieira said.
“Alcoa is a world leader in the aluminium sector that operates with the best production standards. IGNIS is a leading provider of energy solutions for the decarbonisation of industrial facilities and an experienced renewable energy project developer.
“In addition, this is a step forward in the application of public decarbonisation policies promoted by Europe and the government, which translates into a real benefit for the industrial sector.”
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