Alcoa World Alumina LLC and Billiton Suriname Holdings B.V. have reached an agreement in principle where Suriname Aluminum Company LLC (Suralco), an Alcoa subsidiary, will acquire the bauxite and alumina refining interests of N.V. BHP Billiton Maatschappij Suriname (BMS), a BHP Billiton subsidiary, in Suriname.
The said mining and refining joint venture terms are not yet disclosed, However, Frank Plantenberg, Chief Operating Officer South America BHP Billiton Aluminum said, “We are pleased that Suralco has agreed to acquire these BMS interests.”
“While the current conditions affecting the aluminum and alumina industries are challenging, said Franklin Feder, President of Alcoa Latin America. We continue to believe in the long-term value of these businesses.”
In separate statement Alcoa will cut its production by another 38,000 tonnes as it seeks to survive a downturn that hits metal prices, in addition to a 15,000-tonne cut in December.
Suralco is a part of Alcoa World Alumina and Chemicals (AWAC) a joint venture between Alcoa Inc and Alumina Limited, where Alcoa holds 60 percent of it.
Shares of Alcoa rose 28 cents to 3.29 percent at $8.80 in the New York Stock trading.