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[July 2005]
Jamalco Plant Expansion Gets Final Approval
Alcoa announced on 20 July 2005 that its Board of Directors had approved plans for the company's Alcoa World Alumina & Chemicals (AWAC) affiliate to join with the Government of Jamaica to expand the Jamalco alumina refinery in Clarendon, Jamaica. The expansion will add 1.5 million metric tons per year (mtpy) of production to Jamalco, more than doubling the refinery's capacity to approximately 2.8 million mtpy. The cost of the 1.5 million mtpy expansion is expected to be around US$1.2 billion which includes costs for a power station as well as high hurricane wind and earthquake requirements for construction in Jamaica.
The first phase of this expansion, which will add 150,000 mtpy, was announced in May and should be completed by the end of 2006. The second phase is expected to be completed by the end of 2007. As part of this expansion project, AWAC's ownership in Jamalco will move from 50% to approximately 77%. The Government of Jamaica will continue to own the remaining portion.
Prior to execution of the expansion, it is expected that agreements will be finalised to bring natural gas to Jamaica and the refinery, providing cleaner and less expensive power as well as the sale of excess power into the Jamaican market.
"Over the past few years, Jamalco has earned the right to expand," said Bernt Reitan, President of Alcoa Primary Products. "Our strong partnership with the Government of Jamaica helps make this expansion among the best options in the world and should enable us to lower operating costs as we switch fuel sources, while also contributing to better environmental performance."
www.alcoa.com
ENDS