Alcoa JV to Expand Jamaican Alumina Refinery
Publication date:Thursday December 23, 8:07 AM
SYDNEY, Dec 23 Asia Pulse - AWAC, the Alcoa World Alumina and Chemicals (ASX:AWC) joint venture, have signed an in-principle agreement with the Jamaican government to expand the Jamalco alumina refinery in Jamaica.
AWAC and the Jamaican government signed an in-principle agreement to expand the refinery by more than 1.5 million metric tonnes per year (mtpy).
The expansion will more than double the refinery's total capacity to at least 2.8 million mtpy, joint venture partner Alumina Ltd said.
In addition, AWAC ownership in the refinery will move to 70 per cent, from 50 per cent, with the Jamaican government retaining ownership of the remaining 30 per cent.
AWAC is a joint venture between Australia's Alumina, which holds 40 per cent, and Alcoa Inc (60 per cent).
An Alcoa statement said AWAC will pay approximately 85 per cent of the total proposed $US800 million ($A1.05 billion) for the expansion.
Alcoa said a final decision to move forward with the project was expected to be made in the first half of 2005.
The expansion project is expected to be completed by the end of 2007.
Alumina shares were three cents higher at $5.74.
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