Alcoa Acquires Full Ownership of Carbothermic Smelting Technology

Alcoa (NYSE:AA) today announced that it has finalized a deal with ORKLA
ASA to acquire full ownership of the technology associated with the
carbothermic aluminum production process, previously jointly owned by
the companies.

Now in the research and development phase, the carbothermic aluminum
production process is a new technology that holds the potential to
produce aluminum at a lower cost, driven by reduced conversion costs,
lower energy requirements, and lower emissions at a lower capital cost
than traditional smelting. The technology also holds potential for
significant cost improvements in the production of other metals.

'Alcoa will continue research on the carbothermic production process
that we pioneered and have advanced with Orkla′s support over the past
few years,? said John Thuestad, group president of Alcoa′s Global
Primary Products. 'If successful, the carbothermic process would allow
for economical operation of smaller facilities with flexible power
supplies that the current generation of smelters cannot meet. This would
improve the ability to site new facilities.?

The research facility will be relocated to Alcoa′s facility in Lista,
Norway, and several key research employees will transfer to Alcoa.

'Alcoa chose the Lista site to continue research on this potentially
breakthrough technology because of the skills of the Alcoa Norway team
and the supportive environment Norway provides for innovation,? said
Thuestad. 'We believe this is the right place to continue developing
Carbothermic technology.?

Details of the transaction were not disclosed.

About Alcoa

Alcoa is the world′s leading producer of primary and fabricated
aluminum, as well as the world′s largest miner of bauxite and refiner of
alumina. In addition to inventing the modern-day aluminum industry,
Alcoa innovation has been behind major milestones in the aerospace,
automotive, packaging, building and construction, commercial
transportation, consumer electronics and industrial markets over the
past 120 years. Among the solutions Alcoa markets are flat-rolled
products, hard alloy extrusions, and forgings, as well as Alcoa ® wheels,
fastening systems, precision and investment castings, and building
systems in addition to its expertise in other light metals such as
titanium and nickel-based super alloys. Sustainability is an integral
part of Alcoa′s operating practices and the product design and
engineering it provides to customers. Alcoa has been a member of the Dow
Jones Sustainability Index for nine consecutive years and approximately
75 percent of all of the aluminum ever produced since 1888 is still in
active use today. Alcoa employs approximately 59,000 people in 31
countries across the world. More information can be found at www.alcoa.com.

Alcoa

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