Alumar Consortium Starts Up Aluminum Smelter Expansion in Sao Luis, Brazil

Alcoa has announced the start up of its third expansion at the Alumar Consortium located in Sao Luis, Maranhao-MA, Brazil. When the 100 new pots of the expansion are up and running, plant capacity will total 440,000 metric tons per year, a 17% increase over current capacity.

The start-up is taking place in two stages: 48 of the new pots will operate in the first stage with the remaining pots starting up in March 2006. The total expected incremental production in 2006 is approximately 50,000 metric tons.

This project is within the original timetable and budget, with an excellent work safety record. To date, there have been approximately three million man-hours worked without a single lost work day accidents. This first stage of the expansion was built in only 13 and a 1/2 months, which is a record for projects of this nature.

The expansion of the Alumar Consortium's aluminum plant is part of an investment plan that Alcoa Aluminio is implementing for its primary metal production operations in Brazil, totalling US$1.6 billion, which also includes the implementation of a bauxite mine in Juriti, PA (state of Para), doubling of the alumina refinery in Sao Luis, MA (state of Maranhao) and modernization of the aluminum smelter in Pocos de Caldas, MG (state of Minas Gerais).

For aluminum production, the Alumar Consortium is formed by Alcoa (53.66%) and BHP Billiton (46.34%); and, for alumina refining, the Consortium is formed by Alcoa Aluminio S.A. (35.1%), Abalco S.A. (18.9%) -- both subsidiaries of Alcoa Inc.-- BHP Billiton (36%) and Alcan (10%). When the current expansion is fully operational, Alcoa will increase its stake in the Sao Luis aluminum production operation to 60%, representing approximately 264,000 metric tons per year.

http://www.alcoa.com/

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