ASX 200-listed Alumina (ASX:AWC) reports its joint venture (JV) partner, Alcoa Corporation (NYSE:AA), has signed a multi-year supply agreement with Abu Dhabi-based aluminium conglomerate Emirates Global Aluminium (EGA).
The Alcoa World Alumina and Chemicals (AWAC) JV vessel is 60% owned by Alcoa and 40% owned by Alumina. AWAC holds a 100% interest in Alcoa of Australia.
Under the 8-year agreement, Emirates Global will be able to procure up to 15.6 million metric tons of alumina from Western Australia. This will consequently make Alcoa the largest third-party supplier of alumina to Emirates Global. The supply agreement begins next year and represents a ‘significant’ portion of Alcoa’s annual third-party alumina sales.
Alcoa President and Chief Executive Officer (CEO) Roy Harvey says: “Alcoa operates the world’s largest third-party alumina business with low-carbon processes, and we’re proud to be recognised with this significant additional volume from EGA as a leading global producer.
“The agreement is the largest alumina supply contract ever signed between Alcoa and EGA, and it will strengthen the long-term supply relationship between our 2 companies”
The agreement is the largest alumina supply contract ever signed between Alcoa and EGA, and it will strengthen the long-term supply relationship between our 2 companies.”
EGA is the largest industrial company in the United Arab Emirates outside of oil and gas, operating smelters in Abu Dhabi and Dubai, an alumina refinery in Abu Dhabi, and a bauxite mine in the Republic of Guinea.
Emirates Global Aluminium CEO Abdulnasser Bin Kalban says: “Most of our alumina needs into the next decade are now secured by our own production and a long-term supplier in Alcoa that is aligned with our sustainability goals. This agreement will further strengthen EGA’s platform for future growth.”
Alcoa reports the contract includes options for EGA to choose Alcoa’s low-carbon EcoSource alumina, which it claims is the industry’s only low-carbon alumina brand.
Alcoa is a global bauxite, alumina, and aluminium goods producer based in Pittsburgh, US. Together with Alumina, both companies control the Alcoa World Alumina Chemicals JV, which produces alumina and bauxite across 14 projects in Western Australia, Brazil, Spain, and Saudi Arabia.
Emirates Global Aluminium is a ‘premium aluminium’ producer, with smelters in Jebel Ali and Al Taweelah in the United Arab Emirates and associated export facilities in the Republic of Guinea.
Images: Alumina Limited
