Likely Suitors For Global Alumina Emerge

Global Alumina Corp. said it was in discussions to sell the company to an undisclosed third party, with several rivals that hold adjacent claims to its Republic of Guinea alumina project seen as likely candidates. "A number of companies who are already in Guinea but years away from production might want access to a more advanced operation," said one sector analyst. Global Alumina said in a statement a sale would be engineered at $2.65 a share. Global Alumina is in a four-way joint venture with BHP Billiton, the Dubai Aluminum Co. and Mubudala Development Co. in the Republic of Guinea. A 3.2 million metric ton-per-year smelter is to be built on site. "The project has port access, but some of the other companies which have claims in and around Global Alumina's project don't; they might want to get up-and-running faster by taking out Global," one analyst said. CVRD, Mitsubishi Corp. and Rusal all have adjacent claims.