Alcoa Corporation entered into a definitive agreement to acquire South32 Limited’s interests, including its bauxite mine, alumina refinery, and aluminum smelter operations in a cash and stock transaction of approximately $4.1 billion. Alcoa will also assume related rehabilitation provisions of approximately US$1.2B.
According to Alcoa, the acquisition will add a high-quality, low-cost, and globally diversified set of mining, refining and smelting assets, further strengthening the company’s mine-to-metal platform, expanding its global footprint, and increasing its ability to generate sustainable long-term value for shareholders. The acquisition also advances Alcoa’s disciplined, value-creating growth strategy and enhances its position as a leading pure-play upstream aluminum company with a more competitive portfolio of world-class assets in strategically important regions around the globe.
“This is exactly the type of opportunity Alcoa is built to execute,” said William F. Oplinger, president and chief executive officer of Alcoa. “These high-quality, globally relevant assets are a strong strategic fit within our portfolio and align directly with our strengths as a leading pure-play upstream aluminum company. With our proven operating model and global capabilities, we are well positioned to enhance performance, unlock value, and support their long-term success within Alcoa.”
For South32, the transaction is expected to unlock shareholder value and will simplify its product portfolio in base metals, enabling transformational growth. “Under Alcoa’s ownership, the [bauxite, alumina, and aluminum ] assets will be part of a global aluminum value chain business,” said Matt Daley, CEO of South32. “Together with Alcoa, we are committed to working closely with our people, communities, government and other stakeholders to support a successful ownership transition.”
Global Operations
Under the transaction, Alcoa will acquire South32’s interests in Worsley Alumina (86%), including the Boddington bauxite mine and alumina refinery in Western Australia; the Hillside aluminum smelter and idled Bayside smelter property (100%) in South Africa; and the Mineração Rio do Norte (MRN) bauxite mine (33%), the Brazil Alumina alumina refinery (36%), and Brazil Aluminium smelter (40%) in Brazil. The transaction will exclude South32’s Mozal Aluminium smelter in Mozambique.
Alcoa believes that South32’s operations are a strong strategic fit. Alcoa’s proven operating model, technical expertise, and commercial capabilities are expected to unlock meaningful performance improvements and synergies across the combined portfolio. Greater scale and integration are expected to reduce complexity, lower costs, and improve competitiveness while strengthening supply chain resilience across key jurisdictions.
“Alcoa is defined by how we operate, combining operational excellence, commercial discipline, and a values-based approach that prioritizes safety, reliability, and partnership,” said Oplinger. “By investing in this opportunity, we are underscoring our commitment to supply security for our customers, strengthening the communities in which we operate, and delivering responsibly produced materials that are essential to the global economy.”
At the same time, the transaction is anticipated to deliver broad benefits to stakeholders worldwide. It enhances Alcoa’s secure and reliable global aluminum supply at a time of accelerating demand for critical minerals and metals. It reinforces the company’s long-term commitment and investment in Australia and Brazil and establishes a new presence in South Africa. By strengthening industrial capacity in these regions, the transaction will support economic resilience and thousands of direct and indirect jobs across local communities.
Pure-Play Upstream Aluminum Company
Upon closing, Alcoa will be a leading global alumina and aluminum producer with CY2025 pro forma production of 3.2 million tonnes of aluminum and 14.8 million tonnes of alumina, enhancing its scale and global competitiveness while improving its position to capture growth in long-term demand.
The transaction is expected to close in the first half of 2027, subject to the approval of South32’s shareholders, the receipt of required regulatory approvals, and the satisfaction of certain other customary closing conditions. The transaction has been unanimously approved by both Alcoa’s and South32’s board of directors.