Alcoa Ma???aden JV Produces First Alumina at Ras Al Khair - Analyst Blog

Aluminum giant Alcoa Inc. (AA) and the Saudi Arabian Mining Company (Ma'aden) announced that the alumina refinery at Ras Al Khair at their joint venture aluminum complex in Saudi Arabia has produced its first alumina.

The Ras Al Khair alumina refinery is the first ever refinery to be constructed and operated in the region. Ras Al Khair will receive bauxite from Ma'aden Aluminium's mine at Al Ba'itha that will transported by rail. When it is fully operational, the alumina refinery will refine the bauxite to produce 1.8 million metric tons of smelter-grade alumina per year. The alumina from the refinery will then be supplied to the Ma'aden Aluminium Smelter that will cater to the aluminum needed for the Ma'aden Aluminium Rolling Mill.

The alumina will be supplied by conveyor to the adjacent smelter to produce 740,000 metric tons per year (mtpy) of high quality aluminum products. These products will be made available to the customers in the Gulf region as well as in the international markets.

The joint venture between Alcoa and Ma'aden is the lowest cost aluminum complex in the world and is in line with Alcoa's strategy to build a globally competitive commodity business. Ma'aden on the other hand, aims at maximizing the value of Saudi Arabia's mineral resources by building a minerals and metals industry. The company also aims at creating employment opportunities and providing the customers with quality products.

The joint venture will develop a fully integrated industrial complex, comprising a bauxite mine, an alumina refinery, an aluminum smelter and a rolling mill. The venture aims at equipping this complex with the world's paramount primary aluminum, alumina and aluminum products, that caters to the growing needs of the world markets.

Alcoa currently carries a Zacks Rank #2 (Buy).

Other mining companies worth a look include Orbite Aluminae Inc (EORBF), Amerigo Resources Ltd. (ARREF) and Lake Shore Gold Corp. (LSG). All of these hold a Zacks Rank #2 (Buy).

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