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[January 2005]
Alcoa Transfers Juruti Development Rights to AWAC
Alcoa has entered into an agreement with Alumina Ltd, its partner in Alcoa World Alumina & Chemicals (AWAC), to transfer Alcoa's interests in the Juruti (Brazil) bauxite project to AWAC. Alumina Ltd holds 40% of AWAC and Alcoa the remaining 60%. In connection with the transfer of Juruti to AWAC, Alcoa and Alumina Ltd also clarified AWAC's role in future bauxite mining and alumina refining projects in Brazil.
Under the Juruti agreement, Alcoa will transfer ownership of its bauxite development rights in the Juruti bauxite deposit to AWAC and Alumina Ltd will contribute US$40 million to AWAC. As a result of this agreement, Alcoa will realise a gain of approximately US$37 per share in the fourth quarter 2004.
The Juruti deposit is being considered for development to supply bauxite for a planned expansion of the Alumar refinery and for potential supply to other AWAC and third party operations. Alcoa's board is expected to review this project and make a final investment decision late in 2005.
www.alcoa.com
ENDS