Selected 2006 Annual Report Summaries: Aluminum

JOM, Nov 2007

Alcan

NOTABLE: Alcan, based in Montreal, Canada, had production capacity of 3.5 million t/y of aluminum, with 57% in North America, 32% in Europe, and the balance in expanding operations in Asia, Australia, and Africa. * In 2006, Alcan produced 3.406 million t of primary aluminum, a slight decrease from the 3.42 million t produced in 2005. * Alcan announced a $550 million investment to build a pilot plant to commercialize its next-generation AP 50 smelting technology in Jonquiere, Quebec, Canada. The company also announced an accelerated R&D program for its AP technology at its research hub in France's Rhone-Alpes region. * Alcan began construction on an 80 kt/y, $ 180 million spent pot lining recycling plant in the Saguenay-LacSaint-Jean region of Quebec. Alcan predicts that this plant will provide the global aluminum industry with a sustainable solution for spent pot lining by-products. Alcan also announced plans for a $1.8 billion modernization and expansion of its smelting activities in this region. * Alcan participated in the $2.3 billion expansion of the Gove, Australia, alumina refinery. The expansion will increase the facility's capacity from 2 to 3.8 million t/y. The refinery is expected to reach capacity in the first quarter of 2008. * In 2006, Alcan signed an agreement to explore the feasibility of developing a bauxite mine and an alumina refinery with capacity to produce 1.5-2 million t of alumina per year in Ghana. Alcan signed a second agreement to study the development of a bauxite mine and 1-1.5 million t/y alumina refinery in Madagascar. * Alcan also progressed on the construction of a 350 kt/y joint venture smelter in Sohar, Oman; proposed the 720 kt/y greenfield COEGA smelter project in South Africa; and considered brownfield expansion and modernization projects for its Kitimat Works plant in British Columbia, Canada, and the ISAL smelter in Iceland.

Alcoa

NOTABLE: Alcoa, headquartered in Pittsburgh, Pennsylvania, produces primary aluminum, fabricated aluminum, and alumina in 44 countries. * Aluminum production declined by 2 kt to 3.552 million t in 2006 due to the temporary curtailment of the Eastalco, Maryland, smelter. This was partially offset by the first quarter completion of the Alumar, Brazil, smelter expansion and the second quarter acquisition of the minority interests in the Intalco, Washington, smelter. * Alcoa completed a 63 kt/ y expansion of the São Luis smelter in Brazil, bringing le total capacity of the Alumar consortium to 438 kt/y of aluminum. Alcoa raised its stake in the operation to 60%, representing 263 kt/y of smelting capacity. Alcoa is also undertaking a 2.1 million t/y expansion of the Alumar alumina refinery that would bring total alumina capacity to 3.5 million t/y. * Alcoa progressed on its Jamalco alumina refinery expansion, which will add approximately 150 kt/y of alumina refining capacity. The project will boost Jamalco's alumina capacity to 1.42 million t/y using advanced filtration technology. * Alcoa continued work on its 344 kt/y Fjardaal smelter in Eastern Iceland, and began feasibility studies for developing a new 250 kt/y smelter at Bakki in North Iceland. The Bakki plant would be the first entirely geothermai-powered smelter in the world, according to Alcoa. * Alcoa acquired full ownership of two U.S. smelters, Intalco (Ferndale, Washington) and Eastalco (Frederick, Maryland), by purchasing stakes from minority partners. At the Intalco smelter, Alcoa restarted a second potline, bringing production to 180 kt/y. Eastalco is idle while the company explores long-term power options. Together the plants have approximately 475 kt/y capacity. ? An efficiency upgrade was completed at the Pinjarra alumina refinery in Australia. The upgrade increased alumina production capacity by approximately 17%, adding 657 kt/y of low-cost alumina. * The Western Australian government granted environmental approval for the expansion of the Wagerup alumina refinery to increase capacity to 4.7 million t/y.?

Aluminum Corporation of China Limited

NOTABLE: The Aluminum Corporation of China Limited (Chalco), headquartered in Beijing, produces primary aluminum and alumina at plants throughout China. * In March, Chalco began production at Shanxi Huasheng Aluminum Company Limited, a new primary aluminum smelter with 220 kt of production capacity. The new smelter is a joint venture between Chalco, which holds 51% ownership, and Shanxi Guanlv Company Limited. * In March, Chalco acquired 100% of the share capital of Fushun Aluminum Company Limited, a company that is principally engaged in the manufacture and trading of primary aluminum products and has a smelting capacity of approximately 140 kt/y. * In July, Chalco acquired a 55% interest in the Shandong Huayu Aluminum and Power Company Limited, which has an aluminum smelting capacity of 100 kt/y. Chalco acquired the interest through an agreement with Linyi Jiangtai Aluminum Company Limited and Shandong Huasheng Jiangquan Thermal and Power Company Limited. * In August, Chalco agreed to purchase a 51% equity interest in Gansu Hualu Aluminum Company Limited, a producer of primary aluminum, from Baiyin Nonferrous Metal Group Company Limited and Baiyin Honglu Aluminum Company Limited. The Gansu Huala facility has an annual smelting capacity of 127 kt. * As of the end of August 2006, Chalco's smelting capacity for primary aluminum increased by approximately 970 kt from 2005. * The company began construction on three 800 kt7y alumina capacity expansion projects at Guizhou Zunyi, Chongqing Nanchuan, and phase III of the Guangxi branch. * In May, Chalco acquired a 29% interest in the Jiaozuo Wanfang smelter, which has a capacity of 272 kt of primary aluminum. This acquisition makes Chalco the largest shareholder in the smelter. * In August, Chalco completed the acquisition of a 66.4% interest in Zunyi Aluminum, which has an annual smelting capacity of 113 kt.