Alcoa will transfer 25.1% of its rolling mill shares to Ma`aden

Alcoa announced a joint venture agreement with Saudi Arabian mining company Ma`aden. Alcoa will transfer its 25.1% stake in Ma`aden Rolling Company to Ma`aden. The agreement is expected to be completed by the end of this month. The joint venture was established in 2009 and consists of three parties: Ma'aden Bauxite and Alumina Company, Bauxite and Alumina Refinery; Ma'aden cnc Aluminium parts Company, Aluminum Smelting and Foundry; Ma'aden Rolling companies, cans and auto sheet factories.

Alcoa will retain a 25.1% minority stake in its bauxite, alumina and aluminum businesses.Alcoa President Roy Harvey said that the Ma`aden joint venture aluminum process complex is an integral part of the company's portfolio and the company values its partnership with Saudi partners.He said that looking ahead, splitting Alcoa's investment in MRC will enable the company to better pursue future returns in bauxite, alumina refining and aluminum smelting. Creating more strategic flexibility for Ma`aden to further develop the rolling business.

Alcoa will donate $100 million to the rolling mill and pay in two installments. The company waives all future obligations to the MRC, including sponsoring approximately $295 million in MRC debt and future MRC cash demand. The two parties continue to maintain business relationships in sales, logistics and customer technical service support to support MRC products and the North American cans market.