The Alcoa Corporation will support the continued operation of its San Ciprián complex, located on the north-west coast of Spain, after it entered into a joint venture with IGNIS Equity Holdings.
IGNIS Equity Holdings is the majority shareholder in the IGNIS Group of Companies, a vertically integrated energy company based in Spain.
Under the joint venture agreement, which came into effect on 31 March 2025, Alcoa will own a 75 per cent interest and continue as the managing operator, while IGNIS Equity will own a 25 percent interest.
Alcoa and IGNIS Equity contributed €75 million and €25 million respectively, to form the joint venture and fund the operations.
Additionally, up to €100 million may be funded by Alcoa as needed for operations, with a priority position in future cash returns.
Importantly, the joint venture allows for the planned restart of the San Ciprián smelter this year. This is pursuant to a commitment made within an agreement signed between Alcoa and the employees when the smelter was shuttered in 2021 due to exorbitant energy costs, and subsequent profit losses.
Based on recent pricing, Alcoa expects to record a net loss (pre-tax and non-controlling interest) for the smelter of approximately €73 million to €91 million.
Capital expenditures required to facilitate the smelter’s restart approximate €9 million and are included in the Company’s unchanged total return-seeking and sustaining capital expenditure guidance of approximately €68 million and €569 million, respectively.
The joint venture will leverage Alcoa’s deep experience in managing global aluminium operations along with IGNIS Equity’s strong knowledge of energy markets, market access and energy management services.
Since the parties’ potential partnership was announced in October 2024, the Spanish National Government and the Xunta de Galicia have been engaged in the process and have remained committed to support the long-term success of the complex.
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