After changes in Brazilian legislation in the 1990s, private companies were given the opportunity to invest in consortiums for the generation and transmission of power at very competitive costs. This measure not only contributed to business expansion, but also to its sustainability.

Along these same lines it is worth emphasizing the relevance of energy in the production process. This is a fundamental input in the production of aluminum because it makes it possible to transform alumina into primary aluminum.

With regard to the hydroelectric power plants it is important to point out also the investments that have been made. Alcoa has a 25.74% share in the Machadinho Hydroelectric Power Plant Consortium. It also has 42% of the Barra Grande Hydroelectric Power Plant, and with its shareholding in the Serra do Facão hydropower plant in Goiás and the coming online of Estreito (in which it has a 25.49% stake), Alcoa will be 70% energy self-sufficient in Brazil. This power supplies the needs of its unit in Poços de Caldas and part of the consumption of Alumar, the rest coming from a contract with Eletronorte.

The company has been investing in energy for more than 100 years and Alcoa’s new global management team is focused on this topic. All these investments already amount to US$ 1.250 billion. Over the last five years, Alcoa has invested more than R$ 5 billion in Brazil, including in the Serra do Facão (GO) and Estreito (MA/TO) hydroelectric power plants, the bauxite mine in Juruti (PA) and expansion of the Alumar alumina refinery in Maranhão. These investments, which continued even during the global economic crisis of 2008/09, show Alcoa’s commitment to Brazil and its constant willingness to seek sustainable paths to development.