Alcoa, a miner of bauxite and alumina, as well as a major producer of fabricated and primary aluminum, has declared that it has entered into a memorandum of understanding (MOU) with the Angolan government to explore the feasibility of the development of an aluminum smelter with an annual production capacity of 750,000 mt utilizing power from hydroelectric power plants that come under the purview of the Angolan government.
According to the MOU, both parties will start a series of viability studies to understand the feasibility of the project. The agreement offers an exclusivity period of 12 months to negotiate a partnership deal and a power contract. If the project advances, the first aluminum will be obtained from the smelter in 2020.
Angola has the potential for building hydroelectric power plants and plans to utilize the power to draw the attention of energy-intensive industries towards the country. The nation is entrusted to allot 1,300 MW of power for the production of aluminum.
Ken Wisnoski, who serves as the President of Growth Group of Alcoa, commented that the company is paying attention to developing projects that reduces its cost. The company hopes that the proposal of the Government of Angola to offer hydroelectric power provides huge potential and the company is happy to work with the Government of Angola on viability studies, he said.
Source: http://www.alcoa.com