Owners of UC Rusal have signed an agreement with a Chinese firm for the purchase of Alumina Partners of Jamaica (ALPART), a bauxite mining and alumina processing plant located at Nain, St Elizabeth, in the south of Jamaica.
Reliable sources said yesterday that – in a process likely to be concluded by the third quarter of 2016 – the price had been agreed on and that the Chinese company will now enter into its due diligence phase before the financial year closes later this year.
The source said that full-scale reopening of the plant would mean employment and inflows from the bauxite levy. No development plans were mentioned at this stage.
Other sources have named the Chinese company as Jiuquan Iron & Steel (Group) Co Ltd (JISCO) – a producer of carbon steel, stainless & special steel and steelmaking raw materials — as the buyer.
Alpart’s current production capacity is approximately 1.7 million tonnes of alumina annually. It is capable of expansion to more than two million tonnes per annum.
The company was first established in the early 1960s, starting with a union of three companies (Anaconda, Kaiser Aluminium and Reynolds Metals). Since then it has undergone several partnership and ownership changes, the last of which took place in 2011, resulting in the company being 100 per cent owned by UC Rusal Ltd.
In September 2011, UC Rusal inked a deal to acquire the remaining 35 per cent stake in Alumina Partners of Jamaica (Alpart), giving it full ownership of the St Elizabeth-based refinery.
However, hampered by the global economic recession and soaring energy costs, the Alpart plant was shut down in early 2009.
Nevertheless, in September 2015, UC Rusal announced a full resumption of operations.
As it turns out, Rusal, which produces aluminium, continues to be affected by sliding metal prices.
On February 10, United Company Rusal Plc in its fourth-quarter and full-year 2015 trading update said aluminium production in the final quarter of 2015 totalled 878 thousand tons – declining four per cent quarter over quarter (QoQ) and remaining flat year over year. Also, during the period the price decreased by 6.2 per cent QoQ to US$1,729 per tonne.
Rusal said in its update that it does not plan on restarting the aluminium smelters idled in 2013 and is considering further aluminium production cuts totalling approximately 200 thousand tonnes per annum.
It was noted that output at Windalco and Bauxite Company of Guyana were lower QoQ due to seasonal planned repairs and destocking.
Sigh
Is only the Jamaican ppl battam,Poorsha n Peter Peter pumpkin eata lef fi dem sell to the Chinese! Disgusting lot see Pluggiesha a migrate deh so maybe is part of the tri-lateral deal that!
Did u actually read the article to realize that it was owned 100% by a British firm and they are the ones that are selling it to the Chinese? Stop playing politics and do some reading please!
British firm or Russian Firm? I do agree that the Tribalist is trying to put a political spin on things, when no such link exist.
Respect Snowman.Tell me this are you aware that the Jamaican govt will offer incentives n forego certain taxes to make this deal favourable?? Tri-lateral..british,chinese,Jamaica!
@Yardielovethug, that is Capitalism at work–similar tax breaks are offered all over the world; especially in the when the different states and cities compete for business. Alpart was made dormant for a while and it is plausible that the Chinese owned company is going to hire individuals and make better use of the plan–after it is repurposed/retooled.
Thank you Snowman, this is not or should not be a big deal–the company was foreign owned in the first place.
Fair enuff….Respect Lalibela.U should know I’m no Tribalist…my motto has always been pick ur poison!