Alcoa has agreed to sell its its ownership stake in the Jamalco bauxite mining and alumina refining joint venture to the Noble Group for $140 million. The Jamalco joint venture is 55% owned by Alcoa Minerals of Jamaica and 45% owned by Clarendon Alumina Production Ltd. AMJ is part of the Alcoa World Alumina and Chemicals joint venture, owned 60% by Alcoa and 40% by Alumina Limited. Forbes reported the deal late yesterday.
The move to sell its stake in Jamalco is a part of the company’s efforts to lower the cost base of its upstream alumina and primary aluminum businesses, in order to make them more competitive in an uncertain aluminum pricing environment.
The aluminum cash price saw the biggest upwards shift for the day, rising 3.0% on the LME to close at $1,929 per metric ton on Monday, October 20. Following a two-day drop, the Indian aluminum cash price increased by 2.5% to INR 121.50 ($1.98) per kilogram. At $1,944, the 3-month price of aluminum finished the market day on the LME up 2.3% per metric ton.
Chinese aluminum prices were flat for the day. The price of Chinese aluminum scrap saw little movement at CNY 12,250 ($1,995) per metric ton. For the fifth consecutive day, the price of Chinese aluminum billet held flat at CNY 13,590 ($2,213) per metric ton. The price of Chinese aluminum bar was unchanged at CNY 14,200 ($2,312) per metric ton. The Chinese aluminum cash price saw essentially no change for the fifth day in a row, remaining around CNY 13,960 ($2,273) per metric ton.