RTTNews | Sep 20, 2021 07:30PM EDT

18:01 Monday, September 20, 2021 (RTTNews.com) - Alcoa Corp. (AA) Monday announced plans to restart its Alumar smelter in So Lus, Brazil, which has been fully curtailed since 2015.

The process to restart the idle capacity will begin immediately. The first molten metal is expected in the second quarter 2022, and the full 268,000 mtpy of capacity is expected to be operational in the fourth quarter 2022. By 2024, the Alumar smelter will be powered with 100 percent renewable energy.

"Our restart decision is based on an analysis that shows the smelter can be competitive throughout all cycles, leveraging the co-located refinery, a strong workforce, and competitive, renewable power arrangements," said John Slaven, Executive Vice President and Chief Operating Officer. "With this planned restart, we'll be able to build upon the strong capabilities at this site and capture benefits for our investors, customers, employees and the stakeholders in the state of Maranho in Brazil."

The smelter is jointly owned by a subsidiary of Alcoa and South32 and has three potlines with a total operating capacity of 447,000 metric tons, which includes Alcoa's share of 268,000 metric tons. Alcoa Alumnio, a wholly owned subsidiary of Alcoa Corporation, owns 60 percent of the smelting and casting capacity; South32 holds the remaining 40 percent.

The Alumar smelter restart will involve the hiring of more than 750 employees and will add to the 850 direct employees at the site's co-located alumina refinery.

The cost of the restart is anticipated to be about $75 million, including around $10 million in capital expenses. Restart expenses expected to be incurred in the fourth quarter of 2021 are estimated to be between $15 million and $20 million pre-tax or $0.05 and $0.07 per share.

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