French commercial court allows Guinea firm to take over specialty alumina leader Alteo
On Thursday, January 7, a commercial court in France gave a green signal to Guinean logistics specialist United Mining Supply (UMS) to take over Alteo, a global leader in specialty alumina. The former was the last remaining bidder to take charge of Alteo’s production site near the southern city of Marseille. Alteo entered bankruptcy due to falling orders against the backdrop of global crisis in the aluminium industry.
According to the court, United Mining Supply’s financial aid to Alteo as its new shareholder would help the plant free up enough cashflow to continue operations.
UMS, owned by French-Lebanese-Guinean businessman Fadi Wazni, will help Alteo clear a part of debt and phase out the import of bauxite within 12 to 18 months. Alteo primarily imports bauxite from Guinea.
Alteo was accused of stocking bauxite residue outdoors, resulting in air and water pollution. Also, it was alleged to dump polluted production residue called red mud into the Mediterranean.
Rio Tinto, Alteo’s former owner, has committed to cleaning up the site with the cost estimated at up to 30 million euros, according to UMS.
Alteo’s production site supports 400 jobs, including subcontractors and service providers, which makes it one of the biggest employers in the Aix-en-Provence region.
China’s alumina price stands marginally higher; Alumina (Imported) price stands at RMB 2460/t
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