ALUMINA (AWC)

AWAC strategic investments

Investments in greenfield alumina refineries to generate long-term profitable growth are also being actively evaluated.

In Guinea, West Africa, AWAC, Alcan and the Government of the Republic of Guinea, have signed a protocol to jointly develop a 1.5 million tonne per year, latest-technology alumina refinery.

A detailed feasibility study for the refinery is being developed within the framework of the protocol.

AWAC already has a presence in Guinea through a long-standing interest in Compagnie de Bauxites de Guinee, which mines bauxite in the Boké region of the country.

Guinea has the largest high quality bauxite reserves in the world and has the potential to have a significant role in the world alumina industry.

The development of the alumina refinery would see AWAC expand its global refinery network and add value to the high quality bauxite reserves in Guinea.

AWAC is also developing with the Government of Ghana a feasibility study to construct a 1.5 million tonne alumina refinery.

This study is expected to be completed in 2006 and covers the development of an integrated aluminium industry in Ghana, including bauxite mining, alumina refining and aluminium smelting.

Alcoa continues to negotiate with Chalco to acquire a 50% interest in the bauxite/ alumina and aluminium facility in Pingguo, China. Upon successful completion of those negotiations, AWAC would be offered participation in the bauxite mining and alumina refining operations at Pingguo.

AWAC also completed a strategic investment in late 2004 for a 20% interest in the Dampier to Bunbury natural gas pipeline in Western Australia.

This investment secured AWAC’s existing long–term gas transmission contract, and will enable investment in additional transmission capacity to support growth in AWAC’s Australian refineries.