Alcoa to Explore Development of Smelter In Angola

NEW YORK--October 27, 2011: Alcoa announced today that the Company has signed a memorandum of understanding (MOU) with the Government of Angola to explore development of a 750,000 mt per year aluminum smelter using power from hydroelectric facilities under consideration by the Government.

“We believe the Angola Government's proposal to provide hydroelectric power offers great potential and we are pleased to have the opportunity to work together on feasibility studies.”

Under the agreement, both sides will begin a series of feasibility studies to determine the viability of the project. The MOU provides for a 12-month exclusivity period to negotiate a power contract and cooperation agreement. If the project moves forward, first metal from the smelter would be produced in 2020.

Angola has significant capacity for developing hydroelectric facilities and intends to use that capacity to attract energy intensive industries to the country. The country has committed to allocate 1,300 megawatts of firm power capacity for the aluminum industry.

"Alcoa is interested in pursuing projects that lower our cost position," said Ken Wisnoski, president of Alcoa's Growth group. "We believe the Angola Government's proposal to provide hydroelectric power offers great potential and we are pleased to have the opportunity to work together on feasibility studies."

About Alcoa

Alcoa is the world's leading producer of primary and fabricated aluminum, as well as the world's largest miner of bauxite and refiner of alumina. In addition to inventing the modern-day aluminum industry, Alcoa innovation has been behind major milestones in the aerospace, automotive, packaging, building and construction, commercial transportation, consumer electronics and industrial markets over the past 120 years. Among the solutions Alcoa markets are flat-rolled products, hard alloy extrusions, and forgings, as well as Alcoaź wheels, fastening systems, precision and investment castings, and building systems in addition to its expertise in other light metals such as titanium and nickel-based super alloys. Sustainability is an integral part of Alcoa's operating practices and the product design and engineering it provides to customers. Alcoa has been a member of the Dow Jones Sustainability Index for nine consecutive years and approximately 75 percent of all of the aluminum ever produced since 1888 is still in active use today. Alcoa employs approximately 59,000 people in 31 countries across the world.