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[January 2005]
Agreement Reached to Greatly Expand Jamaican Alumina Plant
Alcoa (Pittsburgh, PA, USA) has announced that its Alcoa World Alumina & Chemicals (AWAC) affiliate and the Government of Jamaica have signed an agreement in principle to expand the Jamalco alumina refinery in Clarendon, Jamaica by more than 1.5 million metric tons per year (mtpy). The expansion will more than double the refinery's total capacity to at least 2.8 million mtpy. In addition, AWAC ownership in the refinery will move from 50% to 70%. The Government of Jamaica will continue to own the remaining 30%.
AWAC will pay approximately 85% of the total proposed US$800 million for the expansion and movement to 70% ownership. The expansion initiative stems from a 2002 agreement with the Jamaican government to remove a nearly 30 year-old levy on bauxite in order to encourage investment. At the time of the initial expansion (completed in 2003) the removal of the levy along with the expansion lowered costs at Jamalco by approximately 30%. This new expansion will place Jamalco among the world's lowest cost refineries. AWAC is a global alliance between Alcoa and Alumina Ltd, with Alcoa holding 60%.
ENDS