Alcoa Inespal SL, a subsidiary of Alcoa Corporation, has reportedly entered into a strategic agreement with IGNIS Equity Holdings, SL, the majority shareholder in the IGNIS Group, the Spanish National Government, and the Xunta de Galicia, to continue to support San Ciprián smelter's operations.
All the San Ciprián stakeholders have signed a Memorandum of Understanding outlining some strategic plans to address the current issues at the smelter. The plans include:
The news came on Tuesday, January 21, after Alcoa's Global Vice President Energy Álvaro Dorado Baselga said, "Today, Alcoa Inespal, IGNIS EQT, the Government of Spain and the Government of Galicia took an important step forward together in improving the long-term outlook for San Ciprián. We expect to use the momentum created today to progress dialogue with our remaining stakeholders, particularly the national Trade Unions, and the local Workers Council, and reach the final elements necessary for San Ciprián's future."
After two years of operation curtailment due to high energy costs, Alcoa reactivated the San Ciprián smelter in January 2024, aiming to bring the facility to full operation by October 1, 2025. The initiative started with signing two long-term wind power purchase agreements (PPAs) in 2022, securing up to 75 per cent of the smelter's requirements at total capacity, followed by close collaboration with the workforce for phase-wise recommencement plans and committing to provide $181 million for capital investments and restart expenditures.
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