UC Rusal has completed the sale of a 100% stake in Alumina Partners of Jamaica (‘Alpart’) to the Chinese state industrial group, JIUQUAN IRON & STEEL (GROUP) Co. Ltd. (‘JISCO’) for a USD 299 mln cash consideration.
The divestment of Alpart does not affect Rusal’s 100% self-sufficiency in alumina. Vertical integration into efficient upstream assets remains one of the key pillars of Rusal’s strategy.
Alpart (Alumina Partners of Jamaica) is a large production complex in Jamaica, which uses its own bauxite mines to feed alumina production. Before the suspension of operations at Alpart between 2009 and 2015, annual production capacity of the complex was 1.65 mln tonnes of smelter-grade alumina and 4.9 mln tonnes of bauxite. RUSAL acquired a 65% stake in Alpart in 2007, following the merger of the company’s assets with the alumina assets of Swiss-based Glencore. Since acquiring the remaining 35% of Alpart in November 2011, Rusal has owned 100% of Alpart.
The deal received the required approvals by UC Rusal’s Board of Directors and is in line with management efforts directed at Rusal’s asset portfolio optimisation.
On July 19, 2016, UC Rusal and JISCO entered into an Interest Purchase Agreement for the sale of a 100% stake in Alumina Partners of Jamaica (‘Alpart’).