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Alcoa To Sell Its Stake In Jamalco To Noble Group For $140 Mln

Aluminum producer major Alcoa, Inc. (AA), on Wednesday said Alcoa World Alumina and Chemicals or AWAC will sell its 100 percent stake in the Jamalco joint venture to Noble Group Ltd. (NOBGF) for $140 million. As a result, Alcoa will record a non-cash loss of about $80 million to $100 million, or between $0.07 and $0.09 per share, after-tax and non-controlling interest in the fourth quarter.

The Jamalco joint venture is 55 percent owned by Alcoa Minerals of Jamaica or AMJ and 45 percent owned by Clarendon Alumina Production Ltd. AMJ is part of the AWAC joint venture, owned 60 percent by Alcoa and 40 percent by Alumina Ltd.

Under the deal, AWAC will continue as the managing operator for three years and employees will remain employed by Jamalco.

"The decision to sell AWAC's stake in Jamalco is in line with Alcoa's global strategy to reshape its upstream portfolio and lower the cost base of our commodity business," commented Bob Wilt, President, Alcoa Global Primary Products.

The transaction is expected to close by the end of the fourth quarter.

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