Alcoa is in plans to acquire mines utilized for the production of aluminium from BHP Billiton and Rio Tinto. The firms have earlier this year shelved and sold mines citing poor outlook for the metal.
Mr Alan Cransberg MD of Alcoa Australia stated that during the period of following 10 years demand for aluminium is expected to increase around 6.5% annually which will prove to be very beneficial to the whole industry.
Earlier during this month, BHP Billiton sold its 33.3% stake in an alumina project in Guinea as well as cancelled plans for a smelter in the Democratic Republic of Congo. The firm even discontinued exploration at Guinea's Boffa Santou Houda site.
Since 2011 October, Rio Tinto has put up 13 aluminum assets for sale along with its Gove operations in Australia which is basically expected to strengthen financial position of the group. Followed by an 18% decline in 2011 aluminum prices have fallen 3.3% this year.