Russian Aluminum closes purchase of 20 percent of Queensland Alumina Limited

Russian Aluminum, the third biggest aluminum producer in the world, said that it had closed a deal to purchase 20 percent in the world's largest alumina smelter - Australia's Queensland Alumina Limited - securing a vital raw materials supply.

In October, Russian Aluminum, which is owned by metals tycoon Oleg Deripaska, made a winning US$401 million (€309.44 million) bid to buy the stake from the bankrupt, Houston-based Kaiser Aluminum. Under the deal, which had been pending final approval from Australian government bodies, Russian Aluminum agreed to shoulder some US$60 million (€46.3 million) of Kaiser Aluminum's debt, the company said in a statement late Friday.

The purchase will give Russian Aluminum access to some 770,000 tons of alumina per year, an amount that is expected to be eventually increased to 1 million tons. The alumina will be available in full for delivery to Rusal's smelters in 2008 and will boost the company's raw material base by 22 percent, the statement said.

Associated Press

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