Mining Engineering’s Weekly Rundown: Episode 59

First, South32 has agreed to sell most of its aluminum business to Alcoa in a deal valued at up to $5.6 billion. Alcoa will acquire bauxite, alumina, and aluminum assets in Australia, Brazil and South Africa while assuming about $1.2 billion in environmental and site closure liabilities. South32 will retain its Mozal aluminum smelter in Mozambique, which it placed on care and maintenance earlier this year. The transaction is expected to close in the second half of 2027, after which South32 plans to return about $500 million to shareholders through a special dividend. Separately, South32’s Sierra Gorda joint venture approved an expansion that will increase processing capacity by about 25 percent and boost copper production.

Next, the U.S. Department of Energy has selected five projects to receive a share of $75 million in funding to recover rare earth elements and other critical materials from coal and coal-based feedstocks. The pilot-scale projects will produce materials including rare earth elements, gallium, germanium and aluminum at industrial facilities across the country. The selected organizations include the University of North Dakota, Valor Metals, CONSOL Innovations, American Resources Corporation, and Peabody Energy. The funding follows the department’s nearly $1 billion announcement last year to expand mining, processing and manufacturing technologies across the domestic critical minerals supply chain. The awards remain subject to negotiations before DOE finalizes funding.

Finally, Ferrari and BMW have joined Tesla and several Chinese electric vehicle manufacturers in replacing copper wiring with aluminum as copper prices remain elevated. Ferrari introduced aluminum power cables in its 296 hybrid sports car last year and has expanded their use to additional models, including its first electric vehicle. BMW has used aluminum conductors since 2011 and now installs them across its latest electric vehicle platform. Aluminum costs about one quarter as much as copper and weighs less, making it an attractive option for automakers seeking to reduce vehicle weight and costs. JPMorgan estimates aluminum could replace about 2 percent of global copper demand this year, with that figure rising to as much as 6 percent by 2030 if adoption continues.

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