Pittsburgh-based Alcoa said it had signed a memorandum of understanding with the Spanish National Government, the Xunta de Galicia, and the IGNIS Group to continue supporting the operations in San Ciprian.
Alcoa said it has operated San Ciprian for a number of years in a challenging economic environment, and that after a robust sale process that did not result in viable bids for 100 percent of the operations, a partnership with IGNIS EQT emerged. While the companies will continue to work toward a joint venture, the MOU, officials said, would outline a process for all parties involved to work cooperatively toward improving the long-term outlook for the San Ciprian operations.
“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,” Alcoa’s Global Vice President of Energy Álvaro Dorado Baselga said. “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.”
Officials said the MOU covers several key areas of operation and issues including a short-term focus on continued dialogue with San Ciprian’s workers representatives, streamlining the authorization of renewable energy projects while deploying policies to achieve competitive energy costs, and working to provide higher CO2 compensation support.
The companies said they will also continue working with the San Ciprian workers unions to support operations.