Suralco is a part of Alcoa World Alumina and Chemicals group of companies owned 60% by Alcoa and 40% by Alumina.
Suralco operations, comprising mining, refining and Afobaka hydroelectric projects, will be sold to a Suriname government-owned company.
The company is also curtailing alumina refining production at Suralco by 443,000 metric tons annually by closing down one digester in April.
Alcoa Global Primary Products president Bob Wilt said: "Reducing the production of the refinery will assist in extending the life of the operations as we continue to work with the Government of Suriname on the transaction.
"We are committed to working with the Government to find the best solution for the Suralco facility."
Suralco operates with limited bauxite reserves and lacks a long-term energy solution, the company said.
The Suriname entity employs 700 people across its Paranam refinery and related mining operations. Its total annual refining capacity is 2.2 metric tons, with 876,000 metric tons currently idled.
The reduction in refining capacity and sale of operations are in line with Alcoa’s strategy to create a globally competitive commodity business.
Earlier this month, Alcoa has announced that it will review curtailment or divestiture of 500,000 metric tons of smelting capacity and 2.8 million metric tons of refining capacity over the next one year.
These potential actions could reduce Alcoa’s global smelting capacity and global refining capacity by around 14% and 16% respectively.
