Century Aluminum books over $100m gain on Jamalco deal

Century Aluminum, the new owner of Jamalco, has booked a US$103.3 million gain on its acquisition of the alumina refinery.

The deal struck in May has been described by Century as a bargain purchase deal, having paid US$1 for the loss-making asset.

Jamalco converts mined bauxite into alumina, an intermediate product for the manufacture of aluminium, which Century produces at its smelters in the United States and Iceland.

The local plant, operating at 80 per cent capacity exported US$43 million worth of material in the second quarter.

Century acquired 55 per cent of Jamalco, replacing Noble Group of Hong Kong as joint-venture partner with the Government of Jamaica, which holds the remaining 45 per cent through holding company Clarendon Alumina Partners.

According to Century's financial results, Jamalco's net assets are estimated at US$144.4 million, and Jamaica's stake amounts to US$32.8 million.