Jamaica to Sell Bauxite/Alumina Stake to China Firm

Bruce Golding told parliament late on Tuesday that negotiations were advanced for the sale of the government's 45 percent stake in CAP, also known as Jamalco, to Chinese company Zhuhai Hongfan.

The other partner in Jamalco is Alcoa Inc (AA.N: Quote), which owns 55 percent of the shares.

"We have entered into an agreement with a Chinese firm, Zhuhai Hongfan, for the sale of CAP," Golding said, adding:

"The sale is subject to the inherent right of Alcoa, our joint venture partner in Jamalco, which has a 90-day right of first refusal".

Golding said Zhuhai Hongfan had an alumina supply contract with the Aluminum Corp of China (Chalco) (601600.SS: Quote) (2600.HK: Quote), the country's top aluminium maker, and had also secured financing commitments from the China Development Bank.

"Hongfan is also committed to expanding the Jamalco plant from 1.2 million tonnes to 2.7 million tonnes, provided adequate long-term bauxite reserves can be assured," the Jamaican prime minister said.

"Representatives of Hongfan, Chalco, China Development Bank and Alcoa met in Jamaica last week and we are optimistic that the agreement will be consummated," he added.

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