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Alcoa’s AliGroup Acquisition: Can South32’s Assets Reshape Its Cost Curve?

Alcoa Corporation reported strong operational and financial performance in the second quarter of 2026, highlighted by record revenue and solid execution on strategic initiatives, including the significant acquisition of South32’s upstream aluminum value chain assets (AliGroup). The company emphasized safety improvements, with a continued decline in key injury metrics and expanded efforts to eliminate fatality risks globally. Operationally, Alcoa produced a record volume at several smelters and a refinery, increasing primary aluminum output by 30,000 metric tons sequentially. Labor relations milestones were achieved with multiyear agreements secured across key geographies, providing workforce stability. Strategic investments were also advanced with a $65 million expansion of the Mosjoen cast house in Norway to increase production capacity and incorporate recycled aluminum and a new gallium production facility at the Wagerup Alumina Refinery in Australia, supported by governmental partners, underscoring diversification beyond aluminum.