Luciano Alves, CEO, Companhia Brasileira de Alumínio (CBA)
Can you introduce CBA?
Companhia Brasileira de Alumínio (CBA) is a fully integrated aluminum producer, which is uncommon – usually, there are separate bauxite producers, alumina producers, smelters, and downstream businesses. For the company's entire history, we have done it all: producing our own bauxite (the primary ore of aluminum), generating power, producing aluminum products and recycling. This complete integration provides us with a significant competitive advantage.
We are focused on Brazil, selling 90% directly to the Brazilian market and exporting 10%. CBA will continue to grow, with significant investments across each step of our value chain and many investments flagged for the future modernization of the company, including decreasing emissions. One of these investments is the installation of press filters in one of our tailings dams to transition to dry-stacked tailings.
How does CBA produce aluminum sustainably?
We have a low-carbon production process due to the use of renewable power and established recycling operations. We expect to see higher demand for low-carbon products, particularly when there is a differentiation in pricing for low-carbon products.
Recycling is a key investment for our future. Financially, it is a more stable, less volatile business than primary aluminum, which is a commodity business. In Brazil, the collection network for scrap is relatively well-developed.
What is your strategy for the coming years?
CBA is developing and delivering big investments in 2023. The first is the press filter technology, which is key for us as we transition to dry-stacked tailings. That big investment reached an important milestone with the delivery of filter press equipment in the work in April, and electromechanical assembly, and will be completed at the beginning of next year. Second, we are investing in recycling, having commissioned a new scrap cleaning and processing plant in October 2023. This will increase our capacity for recycling and enable us to utilize lower-quality scrap.
Guido Germani, CEO, Mineração Rio do Norte
Can you give an overview of Mineração Rio do Norte and the company’s footprint in Brazil?
Mineração Rio do Norte (MRN) was the first big bauxite mine in Brazil, and today, we are still the largest Brazilian producer and exporter of bauxite, with a production capacity of 18 million t/y, but currently producing 12.5 million t/y. Approximately 70% of our production remains in Brazil, primarily serving verticalized refineries, and the rest of the production is exported to countries in North America, Europe and Asia.
Can you speak to MRN’s performance in the last 24 months?
The past year has been challenging, as the market has run into difficulties. We are seeing a lot of smelters closing in Europe because of high energy prices, and there are also a significant number of Chinese companies mining bauxite in Guinea that have brought about 80 million tons to the market in the last five years. Fortunately, MRN has integrated shareholders in the aluminum business who are willing to take all our production. Since we essentially have our own markets, MRN is in a comfortable position.
Although we have an 18 million t/y production capacity, our resources at the East Zone will be depleted by 2027 or 2028. We have thus reduced production to 12.5 million t/y to extend the resource timeframe to make room for the licensing process on the West Zone mine expansion.
What makes the state of Pará attractive as a mining jurisdiction?
The state of Pará is a thriving mineral province with a variety of deposits in early-stage exploration, including nickel, copper, bauxite, iron ore, gold, etc. Compared to Minas Gerais the landscape gradient is much flatter which is favorable for logistics, and there is a river way which is fantastic for logistics as well. However, there is still a significant investment to be made in infrastructure, and the state of Pará is in the process of attracting suppliers to establish themselves in the province.