Investor Presentaiton
Strong commercial organization maximizing
the value of B&A assets
External alumina sourcing
•
2.0-2.5 million mt of external alumina sourced annually
•
Long term off-take agreement with Rio Tinto
•
~900 000 mt annually from Yarwun refinery
Short and medium-term contracts
•
To balance and optimize position geographically
Various pricing mechanisms
•
•
Older contracts linked to LME
New medium to long term contracts mostly index
Fixed USD per mt for spot contracts on index
Long positions in bauxite and alumina
Pricing should reflect bauxite and alumina market fundamentals
• Selling surplus MRN bauxite externally
•
Premium for high bauxite product quality
Mostly term contracts based on % of PAX and/or fixed USD/mt element
Selling 3-4 million mt/yr of alumina externally
•
•
Index pricing 1) (the new norm) and short to medium-term contracts
New contracts: 100% sold on index, except Hydrate and short-term
contracts, normal terms 1-3 years
Legacy LME-linked contracts: priced at ~14% of LME 3M
85% 88%
93%
65% 75% 75%
50%
35%
Hydro
2015
2016
2017 2018
2019
2020
2021
2022
External LME
External index
Internal LME
Internal index
Index exposure
74
1) Rounded figures. Indicating volumes available for index pricing. Includes minority sales priced at % of LME with floor. Based on annual sourced volumes of around 2.5 mill t, assuming normal production at Alunorte.View entire presentation