American aluminium smelter Century Aluminum Company said this week that it has begun the process of buying a 55-percent share of Jamaican bauxite mining and alumina refining operation Jamalco from Noble Group Holdings Limited.
Jamalco, which has a nameplate alumina production capacity of 1.4 million metric tons, will come under Century’s rubric for nominal consideration. No other details of the transaction were made public in the announcement.
Jesse Gary, President and CEO of Century Aluminum, said in a press release that the acquisition improves his firm’s supply of feedstock for its aluminium smelting operations.
“This acquisition is highly strategic for Century as it secures a predictable, long-term supply of alumina, our most critical raw material and achieves increased transparency and control of our supply chain. Acquiring this interest in Jamalco allows us to integrate our aluminum smelting operations with this critical upstream supply of bauxite and alumina to create a more balanced and robust operational footprint, resulting in an organization that is better positioned to deliver strong performance through industry cycles.”
“Jamalco is a well-known and well-regarded organization with a world class operational team. It has historically proven its competitive advantages through its consistent production of high-quality alumina, strategic geographic footprint in the Atlantic alumina market, and strong corporate culture focused on safety, integrity and employee well-being,” he went on. “We believe this acquisition will ultimately provide Century and our stockholders with a meaningful opportunity for long-term value creation. We are very excited to add this high-potential asset to our portfolio and we look forward to working with our new joint-venture partners, Clarendon Alumina Production Limited.”
Jamalco boasts a workforce of over 900 individuals. Century Aluminum expects the deal to close by the end of this month.
