Juruti Bauxite Mine Feasibility Study: $224M NPV Over a 11-Year Mine Life
Alcoa Corporation's Juruti Bauxite Mine in Pará State, Brazil has a Feasibility Study outlining an after-tax NPV of $224M. The mine plan runs 11 years at about 7.4 Mtpa product per year.
Alcoa Corporation's Juruti Bauxite Mine has reported Feasibility Study results for the bauxite project in Pará State, Brazil. 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 $31.66/t (bauxite).
Production and mine plan. The project envisions an open-pit (conventional strip mining) operation. Life of mine is 11 years. Average annual production is approximately 7.4 Mtpa product. Average head grade is 47.10% A.Al2O3, 3.48% R.SiO2, 16.47% Fe. Metallurgical recovery averages 75%. The open-pit strip ratio is 3.61 m3/t.
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 Feasibility Study 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 535 projects we track
- Mine life
- 11yrs
- Study price assumption
- Average Price Assumption $31.66/t (bauxite)
The headline numbers for this bauxite project in Pará State have not moved at all: after-tax NPV is unchanged from the 2021 resource estimate, and mine life is unchanged at 11 years. What has changed is the confidence behind them. This is now a feasibility study, the build-ready estimate usually carrying a plus or minus 15% band, where the earlier filing was a resource estimate. Same economics, firmer footing.
The scale is the striking part. An after-tax NPV of $224M sits against a company with a market cap of US$11.21B, and this is one of 17 projects we track for that company. For a diversified large-cap, a single 11-year bauxite mine at this NPV is a marginal line item, not a needle-mover. The $224M ranks higher than only 29% of the 535 projects we track across all commodities, so this is a mid-to-lower-tier asset on returns, not a portfolio centrepiece. That is the honest read: a solid, de-risked project that is simply too small to matter much to its owner.
Two things decide whether it works. First, the study's own price assumption of $31.66/t for bauxite: the returns rest entirely on that figure holding, and bauxite pricing is not a market this project controls. Treat that assumption as the key sensitivity, since any softening in the realised bauxite price flows straight through to the NPV. Second, whether a company of this size and diversification commits capital to a project this small relative to its balance sheet, or lets it sit. The economics are intact; the question is whether anyone with the cheque book cares enough to build it.
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.
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