Alcoa (NYSE:AA) as billed the Jamaican government $31 million in relationship to the bauxite deal made with the government in 2001.
How the deal works is the forward sale agreement allows Alcoa to charge more money if the cost of producing bauxite is more than the price they agreed upon.
That has been the case, and Alcoa, which is the majority partner of Jamalco, has sent the government of Jamaica the bill, which they are struggling to find the capital to pay.
With the Jamaican government experiencing a financial crisis like many areas of the world, they're attempting to work out a deal with Alcoa.
Prime Minister of Jamaica, Bruce Golding, commented, "I said we're going to pay half of it now but we're going to need some more time to pay the other half. US$31 million is more than J$2.5 billion (US$23.6 million)."
Tuesday, November 9, 2010
Alcoa (NYSE:AA) Bills Jamaica $31 Million for Bauxite
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