PETALING JAYA: Press Metal Aluminium Holdings Bhd is buying a 50% stake in a company that holds a 10% interest in the Worsley Alumina project, as the local smelter seeks to secure long-term access to the key raw material.
In a filing with Bursa Malaysia, the company said 80%-owned subsidiary, Press Metal Bintulu Sdn Bhd, has proposed to acquire a 50% equity interest in Japan Alumina Associates (Australia) Pty Ltd (JAA) for A$250mil (RM739mil).
JAA holds a 10% participation interest in the Worsley Alumina Unincorporated Joint Venture, which owns and operates the Worsley Alumina Project, one of the world’s largest, longest-life and lowest-cost alumina producers.
The proposed acquisition will provide Press Metal the opportunity to access 5% of the annual production of the Worsley Alumina Project, which amounts to 230,000 tonnes of alumina per annum.
The proposed acquisition is expected to be completed by the first quarter of 2019.
The company said it is moving in to mitigate alumina price volatilities by securing the supply of a certain volume of alumina obtained through JAA, instead of third parties.
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