Alcoa to sell interest in Ma’aden JV for $1.1b, expands drone tech

Alcoa (ASX: AAI) will be selling its 25.1% interest in the Ma’aden joint venture (JV) to Saudi Arabian mining company Ma’aden for $1.1b.

The transaction comprises around 86m Ma’aden shares (valued at $950m) and $150m cash.

Pursuant to the terms of the agreement, Alcoa will hold its Ma’aden shares for a minimum of three years, with one-third of the shares becoming transferable after the third, fourth and fifth anniversaries of closing the transaction.

Created in 2009, the JV comprises two entities, the Ma’aden Bauxite (MBAC, the bauxite mine and alumina refinery) and Alumina Company and the Ma’aden Aluminium Company (MAC, the aluminium smelter and casthouse).

Alcoa president and chief executive Willian Oplinger commented on the sale.

“We deeply value our partnership with Ma’aden. We are confident that under the new arrangement, MBAC and MAC are well-positioned for success,” he said.

“The transaction simplifies our portfolio, enhances visibility in the value of our investment in Saudi Arabia and provides greater financial flexibility for Alcoa, an important part of improving our long-term competitiveness.”

The transaction is subject to regulatory and shareholder approval, plus other customary closing conditions and it’s expected to close in the first half of 2025.

Expanding its drone technology

Alcoa is also exploring ways use drone technology across its mining and refining operations.

According to senior digital specialist and chief drone pilot Andrew King, the technology can provide substantial safety benefits and enable tasks to be performed more rapidly and with greater accuracy.

“Inspections at heights in confined spaces and in other hard to access locations become far more straightforward,” he said.

“We’re also able to put drones into environments far sooner than we might be able to put people in there because of risks such as chemical or dust exposure and that means we’re seeing significant reductions in downtime and costs.”

Accessories such as high-tech cameras and sensors can be used for wear and thermal inspections, while thermal imaging technology can spot potential issues and can even assist in determining the size of tree hollows used by animals for nesting.

“Thermal imaging allows us to determine the size of hollows, indicating if they are likely to be used as habitat so we can identify tress to be protected before mining gets underway,” Mr King said.

Alcoa has explored various remote sensing technologies to improve and streamline rehabilitation design, execution and monitoring with successful trials leading to the integration of drones to assist with monitoring requirements.

A project is currently underway to investigate the use of drones to inspect established areas of post-mining rehabilitation.