Alcoa exit

Alcoa will receive US$1.021 billion after exiting the Shining Prospect special purpose vehicle formed together with Chinalco in order to purchase shares in Rio Tinto, the company announced.

Alcoa will receive US$1.021 billion after exiting the Shining Prospect special purpose vehicle formed together with Chinalco in order to purchase shares in Rio Tinto, the company announced.

The money received will improve Alcoa’s cash position and place it in a strong position for both the immediate and long term future, Alcoa president and CEO Klaus Kleinfeld said.

“This transaction, combined with our intention to explore opportunities to expand our commercial relationship, strengthens Alcoa’s ability to weather the economic downturn.

“When the global economy recovers, the pent-up consumer and industrial demand will create a broad array of opportunities in both developed and developing regions for Chinalco and Alcoa.”

Alcoa will record a non-cash after-tax loss of approximately US$120 million on the investment in the first quarter of 2009.

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