6th Jan 2022 06:43
(Alliance News) - South32 Ltd announced on Thursday it had decided to participate in the reopening of the Alumar aluminium smelter, which has been dormant for six years.
The Perth, Australia-based mining company has an interest in the Alumar aluminium smelter, which is located at Sao Luis in the state of Maranhao in Brazil. The other joint-venture partner, the US's Alcoa Corp, also will form part of the restart of the smelter.
The smelter has been on care and maintenance since 2015.
To support the restart, South32 expects to invest USD70 million for the financial years 2022 and 2023. It is not clear how much Alcoa will contribute.
First production is expected in the June quarter, with full capacity of 447,000 tonnes a year to be achieved in the March 2023 quarter.
Alumar smelter will be powered by 100% renewable power.
South32 Chief Executive said: "We are excited to participate in the restart of the Alumar smelter using 100% renewable power. With the smelter benefitting from existing infrastructure, access to our own supply of alumina and long-term green energy sources, we expect our investment to deliver strong returns through the cycle."
By Artwell Dlamini; [email protected]
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