United Co.RUSAL Plc is selling its entire stake in Alumina Partnersof Jamaica to China's Jiuquan Iron & Steel (Group) Co. Ltd. for US$299million.
According to a July 19 news release, the sale is part of theRussian group's plans to optimize assets and reduce debt.
Alpart is a large production complex, which includes analumina refinery and related bauxite . The Alpart facility hasbeen shut since 2009 and had an annual production capacity of 1.65 milliontonnes of cell-grade alumina and 4.9 million tonnes of bauxite. It was 100%owned by RUSAL.
To facilitate the transfer of Alpart ownership, bothcompanies will enter into a consulting and technical service agreement thatwill be effective 18 months from the closing of the deal.
The deal will help Jiuquan Iron & Steelbecome one of the top 10 Chinese aluminum producers, according to the release.
The deal is subject to approvals by the Jamaican governmentand by a number of state bodies in China.
According to a report in June, Michael Henry, Jamaica'sminister of transport and mining, said the Alpart alumina refinery beforethe end of the first quarter of 2017.