South32, Alcoa to restart smelting in Brazil using renewable energy

January 06, 2022 01:11 PM AEDT

Be the First to Comment

Sukriti Nair

Author

Sukriti Nair - Junior Analyst
501 Posts
Sukriti has a keen interest financial research and analysis, financial markets and global financial developments. She has content writing experience in Finance and Economics. Her industrial and internship exposure includes Infrastructure, Pharmaceuti...
Follow Sukriti Nair Follow
Khushboo Joshi

Reviewer

Khushboo Joshi - Financial Journalist
9 Posts
Khushboo Joshi is a multimedia professional with over eleven years of versatile experience in Journalism and Content management across various domains. Also, owing to passion for literature, story-telling and features & fiction writing comes naturall...
Follow Khushboo Joshi Follow

South32 Limited, ASX:S32; metals and mining stocks, renewable energy use, ASX — Image source: © Paha_l | Megapixl.com

Highlights

ASX:S32 to restart Aluminium smelting work with Alcoa Corporation in Brazil.

South32’s Brazil operations will be powered 100% by renewable power.

S32 to invest US$70M across FY22 and FY23 to support the smelter’s restart.

Metals and mining company, South32 Limited (ASX:S32) shared plans to move to renewable energy powered Aluminium smelting in Brazil.

How is S32 planning to restart operations in Brazil?

South32 has decided to participate in restart of Alumar aluminium smelter in Brazil, with its joint venture partner Alcoa Corporation.
The first production is expected by June 2022 quarter, and smelter is to work on full capacity from March 2023.
However, South32’s 40% share of Brazil Aluminium shall now powered 100% by renewable energy.
For this S32 is to invest US$70 million across FY22 and FY23, including US$10 million as capital expenditure.
According to the mining company’s management-

Data Source- ASX release of South32 Limited on 6 January, 2022

As stated in the ASX release, S32 wants to transition to a low carbon future with this decision.

The US$10 million of capital expenditure involved in restarting the operations seems to be taking a toll on share price today. The stock was spotted trading 0.747% lower at AU$3.990 per share at 12:33 PM AEDT.

Bottom line -

S32 share price has fallen on ASX today. The negative reaction seems to be a result of the increased expenditure for restart of smelting work in Brazil. However, S32 believes this will take it to a low carbon future. The results of S32’s decision will be thus become clearer with time.

More from Mining- Korea Zinc to invest US$50M in Energy Vault