Hydro Aluminium sells 65% of Alpart to Glencore

Norway's Hydro Aluminium announced May 25 that it had exercised its right of first refusal to buy 65% of the 500,000t/y Alpart alumina operation in Jamaica from Houston-based Kaiser Aluminum (OTC BB: KLUCQ) and agreed to sell it to Swiss-based metals trader Glencore, the company announced. Hydro's decision means that Russian aluminum giant Rusal misses out on buying the Alpart stake. In April, Rusal placed a successful "stalking horse" bid for Kaiser's 65% of Alpart, offering a base purchase price of US$295mn, BNamericas previously reported. However, Hydro, which holds the remaining 35% of Alpart had the right of first refusal on Kaiser's sale, and decided to exercise that right. No value for the Hydro-Glencore deal was released, the statement said, but it is assumed the price Glencore is willing to pay is more than Rusal's US$295mn-bid for the Alpart stake. Hydro will retain its own 35% interest in Alpart, the statement added. The agreement aims for an optimization of bauxite reserves between Alpart and Jamaica-based alumina refiner Windalco, 93% owned by Glencore and the remainder by Jamaica's government. Windalco produces some 1.25Mt/y of alumina. The idea is subject to approval by the Jamaican government, the statement added. Hydro holds a 34% interest in Brazilian alumina refinery Alunorte, which will give Hydro the right to some 1.4Mt/y of alumina. Kaiser is selling its 65% stake in Alpart and 49% of KJBC as part of a corporate strategy to emerge from Chapter 11 bankruptcy by reinvesting some or all of the company's commodity-based assets, including assets involved in bauxite mining, alumina refining and aluminum smelting. Oslo-based Hydro supplies energy and aluminium in more than 40 countries and is the third largest aluminium supplier globally. Glencore, a subsidiary of Glencore International AG, a privately owned company, has interests in mining, smelting, refining, processing and trading of metals and minerals, energy products and agricultural products.