Alcoa Secures First Major Export Contract to Supply Bauxite From Western Australia Mine
Western Australia State Government approves additional Alcoa third-party bauxite exports
Alcoa Corporation (NYSE: AA), the world’s largest bauxite miner, today announced that Alcoa World Alumina and Chemicals (AWAC)
has secured its first major third-party contract to supply approximately 400,000 bone dry metric tons (bdmt) of bauxite from its
Huntly mine in Western Australia (WA), furthering Alcoa’s strategy to grow its third-party bauxite business.
“This Western Australian contract comes just months after our first trial bauxite shipment from WA to China in mid-2016, which
successfully introduced our WA product to the global market,” said Garret Dixon, President of Alcoa Bauxite, who is based in
Perth.
The WA State Government has also granted approval for Alcoa to export up to 2.5 million metric tons per annum of bauxite for
five years to third-party customers.
”Bauxite exports have the potential to generate greater value from our WA mineral lease, creating additional revenue streams for
Alcoa and the State of Western Australia, while maintaining supply to our three WA refineries,” Mr Dixon said.
The WA contract is one of three bauxite agreements recently signed worth a total of $US126 million to deliver approximately 2.2
million bdmt of bauxite to customers in China in 2017. In addition to the WA contract, Alcoa will supply bauxite from its two mines
in Brazil—Juruti and Mineração Rio do Norte, where Alcoa and AWAC hold an 18.2 percent equity investment. The two supply agreements
for Brazil bauxite replace 2016 contract volume.
The contracts increase the total value of Alcoa’s 2016 and 2017 third-party bauxite supply agreements to nearly $US600
million.
Alcoa, the world’s largest bauxite miner with 45.3 million bdmt of production in 2015, has mines in proximity to major markets
and holds a first quartile cost curve position. Alcoa projects that the market for third-party bauxite demand will double between
2015 and 2024, with China as the biggest importer of bauxite.
The AWAC group of companies is owned 60 percent by Alcoa Corporation and 40 percent by Alumina Limited of Australia.
On November 1, Alcoa Corporation announced it had completed the separation from its parent company Alcoa Inc. (now named Arconic Inc.) and began
operating as an independent, publicly-traded company.
About Alcoa Corp.
Alcoa (NYSE: AA) is a global industry leader in bauxite, alumina and aluminum products, with a strong portfolio of value-added
cast and rolled products and substantial energy assets. Alcoa is built on a foundation of strong values and operating excellence
dating back nearly 130 years to the world-changing discovery that made aluminum an affordable and vital part of modern life. Since
inventing the aluminum industry, and throughout our history, our talented Alcoans have followed on with breakthrough innovations
and best practices that have led to efficiency, safety, sustainability and stronger communities wherever we operate. Visit us
online on www.alcoa.com, follow @Alcoa on Twitter and on Facebook at www.facebook.com/Alcoa.
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website at www.alcoa.com.
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forward-looking statements. Forward-looking statements are not guarantees of future performance and are subject to risks,
uncertainties, and changes in circumstances that are difficult to predict. Although the Company believes that the expectations
reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that these expectations
will be attained and it is possible that actual results may differ materially from those indicated by these forward-looking
statements due to a variety of risks and uncertainties. Additional information concerning factors that could cause actual results
to differ materially from those projected in the forward-looking statements is contained in our filings with the Securities and
Exchange Commission. The Company disclaims any obligation to update publicly any forward-looking statements, whether in response to
new information, future events or otherwise, except as required by applicable law.
Alcoa Corporation
Investor Contact:
James Dwyer, 212-518-5450
James.Dwyer@alcoa.com
or
Media Contacts:
(US) Monica Orbe, 212-518-5455
Monica.Orbe@alcoa.com
or
(AU) Jodie Read, +61 404 800 335
Jodie.Read@alcoa.com.au
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