Alcoa to collaborate with U.S., Australia on new gallium plant

[Aluminum Maker Alcoa Plans To Cut 15,000 Jobs]
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Alcoa (NYSE:AA [https://seekingalpha.com/symbol/AA]) said Monday it is set to collaborate with the U.S. and Australian governments to advance the development [https://seekingalpha.com/pr/20272515-governments-announce-support-for-alcoa-s-gallium-critical-mineral-development-project-in] of a new gallium plant to be co-located at the company’s Wagerup alumina refinery in Western Australia.

Under the terms of the non-binding agreement, the U.S. and Australian governments and Alcoa (NYSE:AA [https://seekingalpha.com/symbol/AA]) would provide capital for the project and receive gallium offtake in proportion to their interests; the capital would be used primarily for preparation of final feasibility studies, and the development and construction of the project.

The latest development follows support given for the project from Japan Australia Gallium Associates, a joint venture between the Japanese government and Sojitz Corp., through a joint development agreement (“JDA”) with Alcoa (AA [https://seekingalpha.com/symbol/AA]) announced in August.

Following completion of feasibility assessments, Alcoa (AA [https://seekingalpha.com/symbol/AA]) expects that a joint U.S., Australia and Alcoa special purpose vehicle would enter into the joint venture with JAGA to construct a gallium plant to be operated by Alcoa, which would be expected to produce 100 metric tons/year of gallium.

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