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After Reporting High Ebitda, CBA Plans to Invest in Its Bauxite Project in Pará and Resume Aluminum Production in São Paulo with an Investment of R$ 2 Billion in Each Undertaking
After reporting a 1,900% increase in Ebitda to R$ 397 million in the second quarter, the Brazilian Aluminum Company (CBA) is already preparing new investments for the coming years. In total, the company will invest R$ 4 billion by 2025 to increase aluminum production capacity at its São Paulo unit and also in bauxite exploration in Pará.
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R$ 2 Billion Divided Between São Paulo and Pará
According to Ricardo Carvalho, CBA’s president, the resources will be equally divided among each segment. The bauxite production project in the municipality of Rondon do Pará (PA) still requires long-term contracts or an investment partner to become a reality.
Carvalho states that the company already has all the necessary preliminary licenses and is now in the project viability stage. The expectation is to define how this project in Pará will proceed by the end of 2022. The executive mentions that the largest consumers of the product would be China and other countries in the Middle East.
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The Pará project has an estimated capacity of 18 million tons of bauxite per year and aims to meet the demand from these markets, competing with producers in Guinea, Africa.
CBA Extracted 2.11 Million Tons of Bauxite in 2019
According to the Brazilian Aluminum Association (Abal), bauxite production in Brazil was approximately 31 million tons in 2019. CBA extracted 2.11 million tons from that total. Carvalho expects that 4.5 million tons will be produced annually at the Pará unit, with the potential to increase production up to 18 million tons.
The executive also emphasizes that the planned investments are for the entire bauxite project in Pará and include the development of the mine and logistics. He states that the company is already in talks with VLI, which manages the Carajás railway. A terminal will be constructed at the Port of Itaqui in Maranhão for the material’s export, although this is still under analysis.
R$ 2 Billion Investment in Aluminum in São Paulo
Another front for CBA is aluminum production, where the company will invest an additional R$ 2 billion in the production and recycling of the material. The plan for primary aluminum production represents a return to capacity for the material in Brazil.
According to the executive, CBA will link furnaces 1 and 3 for aluminum in São Paulo, currently having a capacity to produce 350,000 tons annually, but with the investment, an additional 80,000 tons will be added to production.
This capacity increase is expected to occur by 2025, albeit in a staggered manner. The executive notes that Furnace Room 3 should be operational again by the end of next year. It is also worth noting that to resume primary aluminum production, CBA will need to invest in renewable energy generation, where the company produces 1.4 gigawatts and consumes 700 megawatts.
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