Alcoa Inc (NYSE:AA) recently announced that it is planning and pursuing the sale of Suriname operation, its own entity to the Government –owned firm. In a latest statement issues by Alcoa, it was announced that both the parties (i.e., Alcoa and the Government firm) are eyeing the transaction.
The Transaction: Entire Portfolio Included
In the transaction, the Government-owned firm shall be able to have access of the complete portfolio of Suralco refinery. This shall include Afobaka hydro-electric manoeuvre, refining as well as mining.
In order to seal the deal and reach an agreement, both Suriname and Alcoa have set the deadline of July 1, 2015.
Alcoa Planning Halting the Refining Capacity
During this course of planning, Alcoa Inc (NYSE:AA) is zeroing in on the curtailment of 443,000 metric tons per year at Suralco refinery, in terms of alumina capacity. This process shall be finished off by April 30, 2015.
Alcoa Global Primary Products’ President, Bob Wilt, in this context explains that by bringing down the production at Suralco refinery, they are assisting in extension of operations’ time span. He explained that while Alcoa was working towards the transaction with Government entity, curtailment of refinery’s capacity will widen the life of Suralco’s operations.
The Future of Suralco
In October 2014, both Alcoa, as well as Suriname had agreed upon deciding the future of this refinery. Suralco’s future had remained apprehensive back then, because it functions in the challenging international environment. Also, the absence of enduring and continuing energy solution with restricted bauxite reserves adds to the agony. Alcoa now stated that the continuous and subsequent conversations have led to a Government decision which will enable Suriname to have sustenance in relation with the bauxite industry. With the transaction being processed completely, it would still be under speculation as to what is the exact future of the Suralco refinery, which operates in challenging conditions.