UC Rusal acquired the remaining 35% stake in the Alumina Partners of Jamaica, (Alpart) from Norway’s Norsk Hydro ASA for $46 million. Roughly 5% of the world’s bauxite reserves can be found in Jamaica and the country has a well-developed alumina production infrastructure.
“We believe Rusal’s internal demand for alumina may rise by 2 million metric tons per year over the next three to four years. The Alpart investment helps the company to become self-sufficient in raw materials,” said Vladislav Soloviev, first deputy CEO, UC Rusal.
Operations were temporarily idled at Alpart in 2009 due to a difficult situation in the industry. Rusal is currently developing operationally efficient ways to resume production at the complex, by converting to coal and gas and other cost-cutting processes (including bauxite mining costs) through a more effective production management and cooperation with local suppliers.
Alpart is a large production complex in Jamaica, which uses its own bauxite mines to feed alumina production. Annual production capacity of the complex is 1,673 million mt of cell-grade alumina and 4.9 million mt 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. The deal to acquire the remaining 35% stake in Alpart from Norsk Hydro ASA has been approved by Rusal’s international lenders in accordance with the International Override Agreement.