Hindalco to acquire alumina refinery from Novelis
18 Jan 2013
Aditya Birla Group metal flagship Hindalco Industries will acquire alumina refinery and bauxite mines in Brazil from its wholly-owned subsidiary Novelis as part of corporate reorganisation plan.
"Hindalco Industries has finalised its arrangement for acquiring alumina refinery and bauxite mines from Novelis Do Brasil, a wholly-owned subsidiary of Novelis. The agreement was executed between Novelis Do Brasil, Novelis and AV Minerals (Netherlands), a wholly-owned subsidiary of Hindalco Industries," the company said in a statement.
The alumina refinery, with a capacity of 145,000 tonnes per annum, situated in the city of Ouro Preto, State of Minas Gerias, Brazil, has mining rights of over 50 million tonnes of bauxite reserves.
"This transaction will be done by transferring the Alumina assets of Novelis Do Brasil into a new company to be formed in Brazil and acquisition of all the shares of the new company by AV Minerals," Hindalco said in a filing with the Bombay Stock Exchange (BSE).
The acquisition is, however, subject to all necessary approvals and permits for restarting the idle facilities and operations of the company being obtained in Brazil, it said.
In June 2009, Novelis Do Brasil had suspended the production of alumina at the refinery.
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