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Alcoa to Restart Aluminum Plant in Brazil; Shares Tumble

  • Resumption of idled smelter shows rally can blunt power crunch
  • Alumar will be powered with 100% renewable energy by 2024
Falling aluminum output in China has fueled the metal's rally
Updated on

Alcoa Corp. and South32 Ltd. are proceeding with the restart of an idled aluminum smelter in Brazil after prices of the metal surged to a 13-year high amid Chinese output cuts. Alcoa shares tumbled following the announcement.

Alumar, a complex in the country’s northeast that’s been fully curtailed since 2015, is set to produce its first molten metal in the second quarter of next year, Alcoa said in a statement Monday. The top U.S. aluminum producer’s share of the restart cost will be about $75 million.