With its joint venture partner, Alcoa Corporation, South32 (S32) plans to reactivate the Alumar aluminium smelter (Brazil Aluminium).
The first production is scheduled for the June 2022 quarter, with a maximum capacity of 447,000 tonnes per annum from its three potlines projected in the March 2023 quarter.
South32 forecasts its aluminium production to expand by 16% to 1.26 million tonnes per year once it is fully operational.
South32 has announced that it plans to invest roughly US$70 million (A$97 million) in FY22 and FY23 to assist the resumption of Brazil Aluminium, which has been on care and maintenance since 2015.
South32 has also stated that its 40% stake in Brazil Aluminium would be entirely powered by cost-effective renewable energy. CEO Grahan Kerr is looking forward to resuming operations.
“We are excited to participate in the restart of the Alumar smelter using 100 per cent renewable power,” said Mr Kerr.
“By investing along our existing alumina-aluminium value chain with the smelter’s restart and the expected increase to our shareholding in Mozal Aluminium, we are further integrating our business and meaningfully increasing our share of metal produced utilising green energy. With this decision we continue to make substantial progress in reshaping our portfolio, increasing our exposure to the base metals required for the critical transition to a low carbon future,” added Grahan Kerr.
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