Alcoa looks for more bauxite in Brazil's Amazon
Date: 13-Aug-04
Country: BRAZIL
"But so far there has been no formal definition of the new bauxite project," said the spokewoman for the Brazilian unit of U.S.-based Alcoa Inc. (AA.N: Quote, Profile, Research) , the world's biggest aluminum producer.
Local business newspaper Gazeta Mercantil this week highlighted potential environmental objections to the project, 800 kms west of Belem in Brazil's Amazon rainforest.
The newspaper referred to information published on Web site Amazonia.org.br which stated that the new bauxite venture could involve the deforestation of at least 8,000 hectares (19,800 acres) of forest and that local communities protested.
Juriti has estimated reserves of 350 million tonnes of bauxite and could potentially produce 6 million tonnes a year of bauxite from 2007.
The bauxite would be used to supply Alumar, an alumina refinery and aluminium smelter complex in Maranhao state, in which Alcoa is a partner with BHP Billiton and Alcan Aluminio do Brasil.
Alcoa's head office in the United States recently announced a commitment to invest $1.6 billion in Brazil by 2007. This would involve expanding Alumar's primary aluminum capacity by 60,000 tonnes a year to 450,000 t/yr by 2006, with around 90 percent of output for export.
Capacity of Alumar's alumina refinery would be expanded from 1.3 million tonnes/year to 3.3 million t/yr to meet the aluminum smelter's higher requirement for this raw material, at the same time supplying export markets.
Alcoa already mines bauxite at Mineracao Rio do Norte, a joint venture in Para state which is controlled by Companhia Vale do Rio Doce (CVRD).
According to the Gazeta Mercantil report, Alcoa Aluminio is discussing the environmental issues of the bauxite mine plan with the Para state government but has not yet formally applied for the environmental permit for the new venture.
The Alcoa Aluminio spokeswoman had no immediate comment on the environmental question.