Alcoa To Acquire BHP's Suriname Alumina Refining Capacity

U.S. aluminum producer Alcoa Inc. (AA) will acquire the bauxite and alumina refining capacity of BHP Billiton's (BHP) Suriname subsidiary for an undisclosed amount, Alcoa said Wednesday. Suriname Aluminum Company, LLC, an Alcoa subsidiary, will acquire BHP subsidiary N.V. BHP Billiton Maatschappij Suriname, Alcoa said. The two subsidiaries have been in a mining and refinery joint venture in Suriname since 1984, with Alcoa having a 55% interest and BHP a 45% interest. A source familiar with the matter said Alcoa could curtail up to one-third of the capacity of the 2.2-million-ton-a-year refinery because of weak market conditions. In late 2008, BHP told Suriname's government it would end activities there. The deal is expected to close by the end of June, subject to regulatory approvals.