Energy Minister Phillip Paulwell says he’s pleased by news that mining giants Alcoa have sold their stake in Jamalco to global bulk commodities company Noble Group Limited.
The sale price is USD$140-million or approximately JMD$16-billion.
The Jamaican government owns 45-percent of the Jamalco joint venture, with Alcoa holding the other 55-percent through a subsidiary company.
As a result of the deal, which is set to be completed by the end of the year, Alcoa says it expects to post a fourth quarter write down of between 80-and1-hundred million US dollars.
The sale of Jamalco is consistent with adjustments that Alcoa has been making to its business model in recent times.
The company has been closing higher-cost smelters and cutting costs as a glut in supply has depressed aluminum prices.
Alcoa has also been diversifying its business to reduce its exposure to volatile commodities prices.
Minister Paulwell says the government has made significant savings from the sale.
The Mining Minister is reassuring the workers at Jamalco that no jobs will be lost as a result of the sale.
Phillip Paulwell, Energy Minister, speaking with Nationwide News.
–30–
