Dubal in equity, offtake MoU

DUBAI — Global Alumina Products Corporation (Global Alumina) and Dubai Aluminium Company, Ltd (DUBAL) yesterday announced that they have entered into a Memorandum of Understanding whereby DUBAL would make a substantial investment in Global Alumina.

Published: Sat 13 Aug 2005, 10:30 AM

Last updated: Thu 2 Apr 2015, 4:14 PM

The investment would be by way of share subscriptions and would result in DUBAL ultimately owning 25 per cent of the outstanding shares of Global Alumina.

In addition, DUBAL and Guinea Alumina Corporation S.A., a wholly owned subsidiary of Global Alumina (Guinea Alumina), would simultaneously enter into a long term purchase and sale agreement for 25 per cent of the annual production from Guinea Alumina's proposed refinery.

"We are extremely pleased with the prospect of having DUBAL as a major, strategic shareholder in Global Alumina. DUBAL’s active participation in the development and implementation of the project will significantly increase the likelihood of success for the project," stated Bruce Wrobel, Chairman and Chief Executive Officer of Global Alumina.

"DUBAL is delighted to be entering into an association with Global Alumina Products Corporation, with a view to establishing an alumina refinery in Guinea. DUBAL's involvement in this project will be in line with its strategic objective of upstream integration to achieve security over raw material supply and to develop a major presence in the aluminium industry," said Abdulla Kalban, CEO of DUBAL.

DUBAL and Global Alumina are finalising the details of the two agreements, which will be submitted to their respective Boards for approval. Once approved the agreement with respect to DUBAL's investment in Global Alumina will be submitted to the Toronto Stock Exchange and Global Alumina's shareholders for approval. The equity investment is also conditional upon the ratification by the Guinean National Assembly of the Basic Agreement between Global Alumina and the Government of Guinea and securing commitments for the balance of equity required to fund completion of its refinery project in Guinea.