Alcoa signs MOU for $1 billion smelter

Alcoa has signed a memorandum of understanding with the Government of the Republic of Trinidad and Tobago to build a 250,000 metric tons per year capacity aluminium smelter.

Alcoa has signed a memorandum of understanding with the Government of the Republic of Trinidad and Tobago to build a 250,000 metric tons per year (mtpy) capacity aluminium smelter in Trinidad.

The new smelter and related facilities, including a power plant, a new anode plant and downstream, fabricated opportunities, is projected to cost in excess of $1 billion.

According to Alcoa, the exact size and cost for the overall venture will be determined when the project plan is finalised. The new smelter will utilise power produced by Trinidad and Tobago’s natural gas fields, which will then be converted into low-cost electricity for the smelter and the national grid.

The MOU calls for Alcoa to take at least a 60% ownership stake in the smelter, with a Government state enterprise having responsibility for the remainder.

Alcoa will take a lead role in the management and operation of the smelter and will have a right to 60% of the metal produced, with the Government agency having a right to the remaining 40%, but with the commitment to make this metal available to downstream investors, including Alcoa, Sural of Venezuela and the Trinidad and Tobago manufacturing sector.

The Trinidad and Tobago smelter will be Alcoa’s third major primary products facility in the Caribbean basin and the company’s second Greenfield smelter in 20 years.

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