Alcoa to Curtail Remaining Suralco Refining Capacity

September 14, 2015

Discussions continue with Government of Suriname on preserving bauxite industry

Lightweight metals leader Alcoa (NYSE:AA) today announced the
curtailment of Suralco’s remaining 887,000 metric tons per year of
alumina refining capacity as discussions continue with the Government of
Suriname on preserving the country’s bauxite and refining industry. The
refinery is scheduled to be idled by November 30, 2015. The curtailment
and ongoing discussions are aligned with Alcoa’s strategy to create a
globally competitive commodity business.

Discussions between Alcoa and the Government of Suriname began in
October 2014 to reach a joint solution for Suralco that has faced
expiring bauxite reserves and lacks a long-term energy solution.

“Suralco’s ongoing energy challenges and limited bauxite supply,
combined with unfavorable market conditions, mean it is no longer
possible to continue operations,” said Bob Wilt, President Alcoa Global
Primary Products. “Our immediate attention now turns to the employees of
Suralco who have worked hard during these challenging times. We
understand how difficult this decision is for employees and we will work
closely with them and our unions, government and community stakeholders
during the transition.”

Total restructuring related charges in the second half of 2015
associated with the curtailment are expected to be between $65 million
and $75 million after-tax and non-controlling interest, or $0.05 to
$0.06 per share, of which approximately 50 percent would be recorded in
the third quarter. Approximately 80 percent of the charges are non-cash.

The curtailment follows Alcoa’s March 2015 announcement to evaluate 2.8
million metric tons of refining capacity for possible curtailment or
divestiture. Alcoa’s review of its refining operations is consistent
with the Company’s 2016 goal of lowering its position on the world
alumina cost curve to the 21st percentile.

Suralco is part of the Alcoa World Alumina and Chemicals group of
companies owned 60 percent by Alcoa Inc., and 40 percent by Alumina

About Alcoa

A global leader in lightweight metals technology, engineering and
manufacturing, Alcoa innovates multi-material solutions that advance our
world. Our technologies enhance transportation, from automotive and
commercial transport to air and space travel, and improve industrial and
consumer electronics products. We enable smart buildings, sustainable
food and beverage packaging, high-performance defense vehicles across
air, land and sea, deeper oil and gas drilling and more efficient power
generation. We pioneered the aluminum industry over 125 years ago, and
today, our more than 60,000 people in 30 countries deliver value-add
products made of titanium, nickel and aluminum, and produce
best-in-class bauxite, alumina and primary aluminum products. For more
information, visit,
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Forward Looking Statements

This release contains statements that relate to future events and
expectations and as such constitute forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include those containing such words as
“estimates,” “expects,” “goal,” “plans,” “should,” “target,” “will,”
“would,” or other words of similar meaning. All statements that reflect
Alcoa’s expectations, assumptions or projections about the future, other
than statements of historical fact, are forward-looking statements,
including, without limitation, statements regarding Alcoa’s goal to
create a globally competitive commodity business, the expected timing
for completing the curtailment of the Suralco refining capacity, and the
expected financial impact of the curtailment. Forward-looking statements
are subject to risks, uncertainties and other factors, and are not
guarantees of future performance. Important factors that could cause
actual results to differ materially from those expressed or implied in
the forward-looking statements include: (a) material adverse changes in
aluminum industry conditions, including global supply and demand
conditions and fluctuations in London Metal Exchange-based prices and
premiums, as applicable, for primary aluminum, alumina, and other
products, and fluctuations in indexed-based and spot prices for alumina;
(b) Alcoa’s inability to successfully realize goals established in each
of its business segments, at the levels or by the dates targeted for
such goals (including moving its alumina refining and aluminum smelting
businesses down on the industry cost curves and increasing revenues in
its Global Rolled Products and Engineered Products and Solutions
segments); (c) political, economic, and regulatory risks in Suriname and
the other countries in which Alcoa operates, including unfavorable
changes in laws and governmental policies, tax rates, civil unrest, or
other events beyond Alcoa’s control; (d) changes in preliminary
accounting estimates due to the significant judgments and assumptions
required; (e) the outcome of contingencies, including legal proceedings
and environmental remediation; and (f) the other risk factors summarized
in Alcoa’s Form 10-K for the year ended December 31, 2014, and other
reports filed with the Securities and Exchange Commission. Alcoa
disclaims any obligation to update publicly any forward-looking
statements, whether in response to new information, future events or
otherwise, except as required by applicable law.

Nahla Azmy, +1-212-836-2674
Sonya Elam Harden, + 1-864-357-1258