Pittsburgh-based Alcoa Corp., a bauxite, alumina and aluminum products provider, and Spain-based IGNIS Equity Holdings, the majority shareholder in the IGNIS Group of Companies, a vertically integrated energy company, recently entered into an agreement to support the continued operation of Alcoa’s San Ciprián complex.
Under the terms of the agreement, Alcoa owns a 75 percent interest and will continue as the managing operator while IGNIS EQT owns a 25 percent interest. Alcoa will contribute $81 million and IGNIS EQT will contribute $27 million to fund the operations. Alcoa also may provide up to $108 million as needed for operations. Both partners must agree for any additional funding that would be shared 75 percent by Alcoa and 25 percent by IGNIS EQT.
Alcoa had been seeking to improve the long-term outlook for the San Ciprián operations. In 2021, Alcoa and the employees halted a commitment made within the viability agreement signed because of energy costs. The facility’s smelter recorded a net loss of approximately $50 million in 2024 and negative cash from operations of approximately $60 million.
The partners will allow for the planned restart of the San Ciprián smelter later this year. Work already is underway to support the restart.