Alcoa is set to buy South32’s major bauxite mine and alumina refinery in Western Australia’s South West as part of a deal worth more than $8 billion.
Alcoa will take a controlling stake in Worsley Alumina, which operates a massive bauxite mine near Boddington, about 200 kilometres south of Perth, and an alumina refinery near the town of Collie, 200km south of Perth.
The multi-billion-dollar deal will also see Alcoa buy interests in assets across Brazil and the Hillside Aluminium smelter in South Africa, which the company has called the largest aluminium smelter in the southern hemisphere.
Alcoa president and chief executive William Oplinger said the purchase was an opportunity his company was built for.
Alcoa is buying interests in multiple operations. (AAP Image: Julian Smith)
“These high-quality, globally relevant assets are a strong strategic fit within our portfolio and align directly with our strengths as a leading pure-play upstream aluminium company,” he said in a statement.
“With our proven operating model and global capabilities, we are well positioned to enhance performance, unlock value, and support their long-term success within Alcoa.”
South32’s new chief executive Matt Daley said after the deal, the company’s portfolio would be focused on long-life assets.
“Our business will be simpler with a portfolio of higher margin upstream operations, reduced complexity and greater resilience,” Mr Daley said.
South32’s bauxite mine near Boddington is set to be aquired by Alcoa. (ABC South West: Andrew Williams)
Former South32 chief executive and managing director Graham Kerr, who stepped down yesterday, will stay on as a strategic advisor for the deal.
“This transaction will unlock significant value for shareholders and repositions South32 as a leading upstream base metals-focused company,” Mr Kerr said.
The deal is subject to final approval from South32 shareholders and other regulatory bodies by June 29, 2027.
