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Alumina Ltd examines funding options for Brazil projects blowout

Sun. July 20, 2008; Posted: 10:37 PM
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MELBOURNE, Jul 21, 2008 (Asia In Focus via COMTEX) -- AWC | Quote | Chart | News | PowerRating -- ALUMINA LTD (ASX:AWC), the minority partner of the ALCOA WORLD ALUMINA & CHEMICALS (AWAC) group, is evaluating funding options for a $US1.12 billion ($A1.15 billion) cost blowout at two projects in Brazil. The expansion cost of the Alumar refinery, 54 per cent held by AWAC, had risen to $US1.62 billion ($A1.67 billion), from $US1.3 billion, while the cost of its wholly-owned Juruti bauxite mine development had increased to $US2 billion ($A2.06 billion), from $US1.2 billion.

* AWAC - Alumina's only asset - is controlled by the US-based Alcoa and Alumina chief executive John Bevan said the firm was very disappointed with the increases in the estimated cost of these projects to a total AWAC share of up to $US3.7 billion ($A3.81 billion).

* Alumina said it had committed undrawn debt facilities of about $US400 million ($A411.73 million) and would evaluate during the second half of 2008 the most appropriate way of funding its share of the cost increase.

For full details on Alumina Limited ADS (AWC) click here. Alumina Limited ADS (AWC) has Short Term PowerRatings of 6. Details on Alumina Limited ADS (AWC) Short Term PowerRatings is available at This Link.

    


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