The Gleaner
Jamaica to offload stake in Windalco
Edited by : AL CIRCLE
2 min read
Government plans to sell its seven per cent stake in West Indies Alumina Company (Windalco), which includes operations at Ewarton and Kirkvine, according to Philip Baker, a top economist at the Jamaica Bauxite Institute (JBI).
Valuators are currently tabulating the net worth of the assets.
The world's largest aluminium producer, UC Rusal based in Russia, controls the remaining 93 per cent.
"Currently, there is an independent valuation exercise being done on the seven per cent, but negotiations are still ongoing," Baker said, without revealing an estimate or interested suitors.
Jamaica accounts for 6.5 per cent of the world's bauxite reserves, according to a recent United States Geological Survey study.
The restart at Kirkvine would allow industry production to return to its pre-crisis levels.
The bauxite-alumina sector earned the third-highest foreign exchange for the island at US$531.5 million in exports for 2010.
Jamaica appears on track to better that outcome, having racked up alumina export earnings of US$293.2 million and an additional US$68.4 million from bauxite over the first six months of 2011. The numbers reflected improved half-year performance of 73 per cent for alumina and 10 per cent for bauxite, according to latest balance of payment statistics published by the Bank of Jamaica.
Kirkvine previously missed a July 1 restart date.
Locally, UC Rusal also controls Alpart, which operates bauxite mines and an alumina refinery in Nain, St Elizabeth. Alpart was shut down in 2009 due to overcapacity in the alumina market, and remains mothballed.
UC Rusal in September acquired full control of Alpart, after purchasing the 35 per cent share in Norway's Norsk Hydro for US$46 million. UC Rusal bought its initial 65 per cent of Alpart in 2007 when it partnered with another bauxite company, Glencore.
Valuators are currently tabulating the net worth of the assets.
The world's largest aluminium producer, UC Rusal based in Russia, controls the remaining 93 per cent.
"Currently, there is an independent valuation exercise being done on the seven per cent, but negotiations are still ongoing," Baker said, without revealing an estimate or interested suitors.
Jamaica accounts for 6.5 per cent of the world's bauxite reserves, according to a recent United States Geological Survey study.
The restart at Kirkvine would allow industry production to return to its pre-crisis levels.
The bauxite-alumina sector earned the third-highest foreign exchange for the island at US$531.5 million in exports for 2010.
Jamaica appears on track to better that outcome, having racked up alumina export earnings of US$293.2 million and an additional US$68.4 million from bauxite over the first six months of 2011. The numbers reflected improved half-year performance of 73 per cent for alumina and 10 per cent for bauxite, according to latest balance of payment statistics published by the Bank of Jamaica.
Kirkvine previously missed a July 1 restart date.
Locally, UC Rusal also controls Alpart, which operates bauxite mines and an alumina refinery in Nain, St Elizabeth. Alpart was shut down in 2009 due to overcapacity in the alumina market, and remains mothballed.
UC Rusal in September acquired full control of Alpart, after purchasing the 35 per cent share in Norway's Norsk Hydro for US$46 million. UC Rusal bought its initial 65 per cent of Alpart in 2007 when it partnered with another bauxite company, Glencore.
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