Alcoa (NYSE: AA) and Noble Group Ltd (SGX: N21) today announced the
signing of a definitive agreement that will result in Alcoa World
Alumina and Chemicals (AWAC) selling 100 percent of its ownership stake
in the Jamalco bauxite mining and alumina refining joint venture to
Noble for $140 million. AWAC will continue as the managing operator for
three years under a compensated service agreement and employees will
remain employed by Jamalco.
The Jamalco joint venture is 55 percent owned by Alcoa Minerals of
Jamaica (AMJ) and 45 percent owned by Clarendon Alumina Production Ltd.
(CAP). AMJ is part of the AWAC joint venture, owned 60 percent by Alcoa
and 40 percent by Alumina Limited. CAP is a company wholly owned by the
Government of Jamaica.
“The decision to sell AWAC’s stake in Jamalco is in line with Alcoa’s
global strategy to reshape its upstream portfolio and lower the cost
base of our commodity business,” said Bob Wilt, President, Alcoa Global
Primary Products. “The sale will help achieve those goals, while
maintaining jobs and protecting the economic contributions of Jamalco to
Jamaica.”
Mark Hansen, Head of the Metals Division at Noble Group commented, “This
transaction will provide Noble with an additional 778,800 metric tons of
annual alumina off-take while the Jamaican government retains its 45
percent ownership of the joint venture. This is consistent with Noble’s
strategy to secure supply for customers while working with best in class
operators such as Alcoa. Noble looks forward to partnering with the
Government of Jamaica to continue to build on Jamalco’s robust operating
history, and implement an energy solution that will enhance the
efficiency of the plant.”
The sale is subject to customary regulatory approvals, and is expected
to close by the end of the fourth quarter 2014. As a result of the
transaction, Alcoa will record a non-cash loss of approximately $80
million to $100 million, or between $0.07 and $0.09 per share, after-tax
and non-controlling interest in the fourth quarter. This sale is in line
with Alcoa’s strategy to create a globally competitive commodity
business.
Goldman Sachs & Co. acted as an advisor to Noble Group on this
transaction.
About Alcoa
A global leader in lightweight metals technology, engineering and
manufacturing, Alcoa innovates multi-material solutions that advance our
world. Our technologies enhance transportation, from automotive and
commercial transport to air and space travel, and improve industrial and
consumer electronics products. We enable smart buildings, sustainable
food and beverage packaging, high-performance defense vehicles across
air, land and sea, deeper oil and gas drilling and more efficient power
generation. We pioneered the aluminum industry over 125 years ago, and
today, our 60,000 people in 30 countries deliver value-add products made
of titanium, nickel and aluminum, and produce best-in-class bauxite,
alumina and primary aluminum products. For more information, visit www.alcoa.com,
follow @Alcoa on Twitter at www.twitter.com/Alcoa
and follow us on Facebook at www.facebook.com/Alcoa.
About Noble Group
Noble Group (SGX: N21) manages a portfolio of global supply chains
covering a range of industrial and energy products, as well as having a
49% interest in Noble Agri, its agricultural partnership with COFCO.
Operating across a multitude of locations and customers, Noble
facilitates the marketing, processing, financing and transportation of
essential raw materials. Sourcing bulk commodities from low cost regions
such as South America, South Africa, Australia and Indonesia, the Group
supplies high growth demand markets, particularly in Asia and the Middle
East. In order to ensure the integrity of its supply chains, the Group
has a portfolio of interests in strategic logistics and processing
assets which form an integral part of facilitating its key trade flows.
We are ranked number 76 in the 2014 Fortune Global 500. For more
information please visit www.thisisnoble.com.
Forward-Looking Statements
This release contains statements that relate to future events and
expectations and as such constitute forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include those containing such words as
“anticipate,” “expect,” “plan,” “should,” “will,” or other words of
similar meaning. All statements that reflect Alcoa’s expectations,
assumptions or projections about the future other than statements of
historical fact are forward-looking statements, including, without
limitation, statements about Alcoa’s strategies, objectives, goals,
targets, outlook, and business and financial prospects. Forward-looking
statements are subject to a number of known and unknown risks,
uncertainties, and other factors and are not guarantees of future
performance. Important factors that could cause actual results to differ
materially from those expressed or implied in the forward-looking
statements include: (a) Alcoa’s inability to lower its position on the
world alumina production cost curve or to strengthen the competitive
position of its commodity business as targeted or within the time
periods anticipated; (b) Alcoa’s inability to complete or to realize
expected benefits from the sale of its stake in Alcoa Minerals of
Jamaica, L.L.C. as planned or by the targeted completion date; (c)
failure to receive, delays in the receipt of, or unacceptable or
burdensome conditions imposed in connection with, all required
regulatory approvals and the satisfaction of the closing conditions to
the proposed sale; (d) changes in preliminary accounting estimates due
to the significant judgments and assumptions required; and (e) the other
risk factors summarized in Alcoa’s Form 10-K for the year ended
December 31, 2013, Forms 10-Q for the quarters ended March 31, 2014 and
June 30, 2014, and other reports filed with the Securities and Exchange
Commission. Alcoa disclaims any obligation to update publicly any
forward-looking statements, whether in response to new information,
future events or otherwise, except as required by applicable law.
Alcoa Media Contact:
Monica Orbe, 212-836-2632
Monica.Orbe@alcoa.com
or
Alcoa Investor Contact:
Kelly Pasterick, 212-836-2674
Kelly.Pasterick@alcoa.com
or
Noble Media Contact (Argentus PR):
Candice Adam, +44 20 7397 2915
candice.adam@argentuspr.com
or
Noble Investor Contact:
Stephen Brown, +852 2250 2060
stephenbrown@thisisnoble.com