The agreement facilitates the planned restart of the San Ciprián smelter in 2025.
Under the terms, Alcoa has invested $81 million, and IGNIS EQT has contributed $27 million to fund the JV and the complex’s activities. Alcoa may also provide up to $108 million (€100 million) in additional operational funding, with priority access to future cash returns. Any further financial support will require mutual consent, split 75% by Alcoa and 25% by IGNIS EQT.
This partnership enables the planned restart of the San Ciprián smelter in 2025, which was paused in 2021 due to rising energy costs. The restart aligns with a viability agreement between Alcoa and its workforce, with preparations already in progress before the JV was finalised.
In 2024, the smelter reported a pre-tax loss of about $50 million and negative operational cash flow of roughly $60 million. These costs included employee payments, maintenance expenses, and limited casthouse output to fulfil customer orders. For 2025, Alcoa anticipates a pre-tax loss of $80 million to $100 million, or $0.31 to $0.39 per share, with operational cash use projected at $90 million to $110 million. Capital spending for the restart is estimated at $10 million, fitting within Alcoa’s existing budget plans.
The JV aims to enhance the long-term sustainability of the San Ciprián site by blending Alcoa’s aluminium expertise with IGNIS EQT’s energy market insights. Alcoa’s leadership noted: “This collaboration strengthens our ability to maintain stable operations while adapting to future challenges.” The partnership was initially outlined in October 2024, pending coordination with San Ciprián stakeholders.
Separately, in September 2024, Alcoa agreed to sell its 25.1% stake in the Ma’aden joint venture in Saudi Arabia to the Saudi Arabian Mining Company (Ma’aden) for approximately $1.1 billion (SR4.13 billion). The deal includes $950 million in Ma’aden shares and $150 million in cash.
The San Ciprián JV reflects Alcoa’s strategy to secure its operational base while pursuing sustainable solutions. By restarting the smelter and leveraging this partnership, the company aims to balance financial performance with its commitments to employees and customers.
