BNamericas repoted that, despite posting a group wide 2.07% YoY decline in alumina output to 3.78 million tonnes and a net loss of USD 1.19 billion in 4Q of 2008, Alcoa reported record alumina output at its São Luis refinery in Brazil, producing 210,000 tonnes in the quarter.

Although group wide alumina output in 4Q of 2008 was down, in all of 2008 Alcoa had a global alumina output of 15.3 million tonnes versus 15.1 million tonnes in 2007. Its primary aluminum output in 2008 amounted to 4.01 million tonnes versus 3.69 million tonnes. Primary aluminum production in 4Q of 2008 rose to 971,000 tonnes from 959,000 tonnes YoY.

Alcoa said that "Slightly lower production worldwide resulted from curtailment effects at Point Comfort, which were partially offset by record output in Australia and São Luis."

It added that it is on track to complete the expansion of the São Luis refinery in Maranhão state and also the new Juruti bauxite mine in Pará state. With reserves of some 700 million tonnes and a capex of BRR 3.5 billion, Juruti is expected to start production in August 2009.

Initial production at Juruti will be 2.6 million tonnes per annum and will supply the Alumar alumina plant, which is being expanded to boost output to 3.5 million tonnes per annum from 1.5 million tonnes per annum for a capex of BRR 4.1 billion. The expansion of Alumar is slated for completion in Q1.

Alcoa further added that "Those expansions will begin to deliver positive cash flow to the company late in 2009. When finished, Juruti and São Luis will contribute to Alcoa's world class mining and refining system, moving Alcoa into the lowest cost quartile of the global cost curve."

(Sourced from bnamericas.com)