12:20 PM EST, 01/21/2025 (MT Newswires) -- Alcoa ( AA ) said Tuesday it signed a memorandum of understanding with the stakeholders of the San Ciprian aluminum smelter in Spain to support the continuation of operations at the smelter.

The company's subsidiary Alcoa Inespal signed the agreement with IGNIS Equity as well as the Spanish National Government and the Xunta de Galicia to improve the long-term outlook of the smelter.

Alcoa ( AA ) said it had been operating San Ciprian for a number of years in a "challenging economic environment," mostly due to the high cost of energy, and that it had roped in IGNIS as a potential partner after it did not receive a viable bid for its 100% stake in the operations.

The company said it was working with IGNIS to progress the final conditions necessary to enter in a joint venture agreement involving San Ciprian.

AA shares were edging 0.4% lower in recent trading.

Price: 39.37, Change: -0.16, Percent Change: -0.40