Aluminum giant Alcoa Inc. (AA) Tuesday revealed a cooperation agreement with Vietnam-based minerals development company, Vietnam National Coal-Mineral Industries Group for development of the aluminum industry in Vietnam. The deal reflects a recent government approval to the country's state-owned aluminum company, Vinacomin to set up joint stock companies with foreign partners holding a maximum of 40% stake.
As per the agreement, Alcoa World Alumina and Chemicals will conduct due diligence on the purchase a 40% stake in the 0.6 million metric tons per year Nhan Co alumina refinery proposed in the Dak Nong Province of Vietnam's Central Highlands. On successful completion of the transaction, the remaining interest in the Joint Stock Company Nhan Co bauxite mine and alumina refinery will be held by Vinacomin at 51%, while other investors will have 9% stake.
The parties also agreed to carry out a joint feasibility study at the Gia Nghia bauxite mine and alumina refinery project. First stage capacity at the Gia Nghia bauxite mine and alumina refinery project, located in Dak Nong province, is projected to be in the range of 1.0 million and 1.5 million metric tons of alumina per year.
Shares of AA are currently trading at $37.49, down $0.22 or 0.58%, on a volume of about 5.60 million.
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