São Luis Refinery Continues Ramp-Up; Increased Costs To Be Recognized in Third Quarter

São Paulo - Alcoa Aluminio and AWA do Brasil announced today that the São Luis alumina refinery continues to ramp-up as it recovers from the consequences of energy blackouts and the failure of its ship unloader. Higher production and equipment costs associated with the recovery and ramp-up, of approximately $45 million, will be recorded in the third quarter.

A temporary mobile unloader is being utilized until the permanent unloader is commissioned in late September. During September, the refinery achieved record daily production on three consecutive days.

“These production levels are extremely encouraging and are a tribute to the hard work of the São Luis workforce,” said Franklin L. Feder, president of Alcoa Aluminio. “We are on our way to making São Luis a world-leading, low-cost alumina producer.” At full production, the São Luis refinery will produce 3.5 million tons of alumina annually. Expanded in December 2009, it is the largest brownfield alumina refinery expansion in the world.

The São Luis refinery, located in Maranhão state outside São Luis, Brazil, is jointly owned by Alcoa Aluminio and Alcoa World Alumina and Chemicals/AWAC (54%), BHP Billiton (36%) and Rio Tinto Alcan (10%). Alcoa manages the facility.

Alcoa Aluminio S.A. is celebrating its 45th anniversary in Brazil. It is a leading producer of bauxite, alumina and primary metal in addition to soft alloy extrusions, aluminum sheet and foil, and forged wheels as well as specialty products for the aerospace industry. It operates in eight states of Brazil.

Alcoa World Alumina and Chemicals is a joint venture between Alcoa and Alumina Limited with Alcoa holding 60%.