Alcoa sells two upstream assets
Alcoa has announced it has completed two previously-announced sales within its Global Primary Products portfolio. The divestitures, one in the United States and the second in Jamaica, are apparently aligned with Alcoa’s strategy to lower its cost base and create a globally competitive business.
Alcoa World Alumina and Chemicals (AWAC) finalised the sale of its 55% ownership stake in the Jamalco bauxite mining and alumina refinery joint venture to Noble Group Ltd. The Company completed the sale after receiving all regulatory approvals. Jamalco is located in Clarendon, Jamaica.
AWAC will continue as Jamalco’s managing operator for three years under a compensated service agreement and employees remain employed by Jamalco. AWAC is the joint venture owned 60% by Alcoa and 40% by Alumina Limited of Australia.
Alcoa also finalised the sale of its 50.3% interest in the Mt. Holly aluminium smelter in Goose Creek, South Carolina, to Century Aluminium Company. The smelter has the capacity to produce 229,000 metric tons of aluminium annually.
Both sales are in line with Alcoa’s strategy to create a globally competitive commodity business. In its Primary Metals business, the Company has curtailed, closed or sold 1.3 million metric tons, or 31% of its highest cost global smelting capacity since 2007. The company has reaffirmed its goal to lower its position on the global aluminium cost curve by five percentage points from the 43rd percentile to the 38th percentile by 2016.
