Jamaica Government pays-off outstanding debt to Alumina partner Noble Group

AL Circle

Clarendon Alumina Production Limited, CAP, has repaid all its outstanding debt to the alumina partner Noble Group, amounting to US$135.7 million.

Jamaica pays-off Noble Group

{alcircleadd}

The Jamaican Government indicated last month that it planned to repay the funds, but gave no precise timeline.

However, in a notice to shareholders this week, Noble Group Holdings Limited said: “Its wholly-owned subsidiary, Noble Resources International Pte Ltd, has received full repayment of the loan and interest outstanding under the prepayment facility agreement with CAP.”

“The aggregate amount received was US$135.7 million,” Noble said.

Jamalco Pays off Noble Group

Jamalco is CAP’s primary asset. Clarendon Alumina Production holds 45% of the refinery on behalf of the Government of Jamaica, while Hong Kong-based Noble Group holds 55% via subsidiary General Alumina Jamaica.

The capital-intensive operation is funded by both parties, under which they mine bauxite and then refine it into alumina at the plant-based in Hayes, Clarendon, with Noble as an operating partner.

Jamalco Pays off Noble Group

The debt repayment surfaces the way for the incorporation and the eventual initial public offering, IPO, of the Jamalco alumina refinery on the Jamaica Stock Exchange. The transaction will satisfy a commitment given by Jamaica that it would divest the loss-making CAP via the stock market.

On 14th September, Noble will further update investors on the restructuring of Jamalco and its listing.

Alcircle Presents Global Aluminium EXPO 2020

The loan to CAP dates back to 2013 when the company entered into a US$120-million arrangement with Noble to repay amounts CAP owed to then joint-venture partner Alcoa. The loan paid off CAP’s portion of the working capital debt to Alcoa and also funded further shortfalls that were expected over the medium term as the alumina market was depressed. The repayment of the debt by Government is expected to reduce the national debt by one per cent.

 

Note to readers: AlCircle brings two-day event for aluminium industry players. We look forward to meeting you virtually at “Global Aluminium Expo 2020”on October 6-7, 2020. For registration, visit www.alcircleevents.com

Edited By:


This news is also available on our App 'AlCircle News' Android | iOS


Alternate Text
EPIQ Machinery

A world class equipment designer specialized in developing innovative & effective solutions for heavy equipment, vehicles, and material handling systems

Alternate Text
RIA Cast House Engineering

Leading supplier of rail mounted precision Furnace Charging Machines and Furnace Skimming Machines

Alternate Text
Altek

Leading manufacturer of value-added equipment for the aluminum casthouse

Alternate Text
Jagannath Company

Manufacturers & Supplier of Magnesium Metal and Aluminium Foundry Chemicals

Alternate Text
CETAG

A supplier of proven systems and an expert adviser in aluminum casthouse technology, offering its services worldwide to the aluminum industry.

Alternate Text
IBAAS​-IIM 2024

September 25-27, 2024 | BITS Pilani K K Birla Goa Campus, Goa, INDIA

Related
Business Leads
Interested to buy aluminium powder. Destination :  Amravti,...
10-Jan-2024 Buying request

Interested to buy calcined petroleum coke for aluminium anod...
19-Dec-2023 Buying request

Interested to buy high alumina cement. Sio 28% ...
19-Dec-2023 Buying request

Read this news article and much
more on the AL News app
Get real-time news and business
lead alerts on your phone
SUBSCRIBE NOW
Market

Market

Project

Project

Technology

Technology

Leads

Leads