Alcoa Corporation to divest 25.1% interest in rolling mill to Ma’aden

Alcoa Corporation announced the signing of amended joint venture agreement with the Saudi Arabian Mining Company (Ma’aden). Alcoa will transfer its 25.1 percent interest in the Ma’aden Rolling Company to Ma’aden. The agreement is expected to close by month end.

The joint venture, created in 2009, comprised of three entities: the Ma’aden Bauxite and Alumina Company, the bauxite mine and alumina refinery; the Ma’aden Aluminium Company, the aluminium smelter and cast house); and the Ma’aden Rolling Company, the can and auto sheet mill.

Alcoa will retain its 25.1 percent minority interest in the bauxite, alumina and aluminium businesses.

Alcoa President and Chief Executive Officer Roy Harvey said: “The Ma’aden joint venture aluminium complex has been an integral part of our portfolio, and we greatly value our relationship with our Saudi partners.”

 “As we look ahead, divesting Alcoa’s investment in MRC enables us to pursue future returns in our bauxite mining, alumina refining, and aluminium smelting businesses and gives Ma’aden more strategic flexibility to further develop the rolling business.”

Alcoa to make a contribution to the rolling mill in the amount of $100 million paid in two instalments. The company released from all future Ma’aden Rolling Company (MRC) obligations, including its sponsor support of approximately $295 million of MRC debt and its share of any future MRC cash requirements.

The parties will maintain their commercial relationship in sales, logistics and customer technical services support for MRC products for the North American can sheet market.