Kaiser signs agreement to sell Gramercy, La. refinery, Jamaica interests for $23 million

By Jeff Pines

Washington, May 17 - Kaiser Aluminum Corp. said it signed an agreement to sell its Gramercy, La. alumina refinery and its related 49% interest in the Kaiser Jamaica Bauxite Mining operation for $23 million, subject to U.S. Bankruptcy Court for the District of Delaware approval. A court-approved auction will be held to determine who gets the assets.

Kaiser would sell the assets to a newly-formed joint venture between Century Aluminum Co. and Noranda Inc. The government of Jamaica would retain 51% of the bauxite mining operation.

Houston-based Kaiser is asking the court to rule on bidding procedures at the scheduled June 21 hearing. If the procedures are approved, the company expects the court to make a decision at the scheduled July 19.

The Gramercy plant uses about two-thirds of the bauxite mined by the Jamaica operation. About 75%-80% of Gramercy's output is supplied to Century and Noranda.

Kaiser filed for Chapter 11 on Feb. 12, 2002. Its Chapter 11 case number is 02-10429.

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