Juruti Bauxite Mine Resource Estimate: $224M NPV Over a 11-Year Mine Life
Alcoa Corporation's Juruti Bauxite Mine in Brazil, Pará State has a Mineral Resource Estimate outlining an after-tax NPV of $224M. The mine plan runs 11 years at about 7.4 Mtpa per year.
Alcoa Corporation's Juruti Bauxite Mine has reported Mineral Resource Estimate results for the bauxite project in Brazil, Pará State. The study headlines an after-tax net present value of $224M at a 9% discount rate. It reflects Alcoa Corporation's (AA) latest disclosed economics for the asset.
Economics. The after-tax NPV is $224M using a 9% discount rate. Economics are based on Average Price Assumption of $31.66/t bauxite.
Production and mine plan. The project envisions an open-pit (strip mining) operation. Life of mine is 11 years. Average annual production is approximately 7.4 Mtpa. Average head grade is 47.12% A.Al2O3, 3.45% R.SiO2. Metallurgical recovery averages 75%. The open-pit strip ratio is 3.61 m3/t (average) / 4.2 m3/t (LOM).
Resources and ownership. The company holds a 100% interest in the project. Royalties and streams: Royalty + CFEM 4.5%.
These figures are extracted from Alcoa Corporation's technical disclosures and reflect the most recent Resource Estimate on file. Compare this project against other developers and producers in our project economics database, and always verify the numbers against the original technical report before making any investment decision.
Reserves & Resources
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Proven | 50.94 dry Mt | 47.68% A.Al2O3, 3.52% R.SiO2 | — |
| Probable | 37.94 dry Mt | 46.32% A.Al2O3, 3.41% R.SiO2 | — |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured | 5.66 Mt | 44.53% A.Al2O3, 5.28% R.SiO2 | — |
| Indicated | 58.59 Mt | 45.34% A.Al2O3, 4.42% R.SiO2 | — |
| Inferred | 563.79 Mt | 45.69% A.Al2O3, 4.72% R.SiO2 | — |
Our Analysis
- NPV after-tax
- $224M
higher than 29% of 360 projects we track
- Mine life
- 11yrs
- Study price assumption
- Average Price Assumption of $31.66/t bauxite
The $224M after-tax NPV ranks this project higher than only 29% of the 360 projects we track across all commodities, placing it squarely in the lower-middle tier of the peer set. That rank is not disqualifying, but it signals a modest absolute return profile rather than a standout. For an investor, the practical implication is that this is a steady, incremental value proposition, not a portfolio-transforming one, and it should be judged on execution reliability rather than upside surprise.
The 11-year mine life is the asset's most durable feature. In bauxite, where ore bodies are often large and homogenous, an 11-year horizon provides enough operational runway to justify the development effort and recover capital, but it does not offer the multi-decade optionality that would elevate the project's strategic value. The constraint that matters most, however, is the study stage: this is a Resource Estimate with no economic study behind it. The NPV and price assumption of $31.66/t are indicative at best, and the absence of a PEA or feasibility-level analysis means the $224M figure carries far less confidence than a comparable number from a more advanced study. Investors should treat the economics as directional, not definitive.
The funding question is straightforward: this is the only project tracked for the company, so there is no portfolio cushion to absorb cost overruns or delays. Brazil's Pará State is a significant mining jurisdiction with established bauxite infrastructure, which de-risks logistics, but the single-asset concentration remains the key vulnerability. The project is already at the production stage, which suggests development risk is largely behind it, yet the resource-stage economics mean the returns could shift materially once a proper study is completed. The deciding question is whether the company can convert this resource-stage estimate into a bankable feasibility study without diluting existing shareholders, because the current NPV is simply too preliminary to justify a premium valuation on its own.
Our take, benchmarked against the project economics in the Mining Stocks database. Figures are estimates drawn from company technical reports — not investment advice; always verify against the source filing.