Alcoa Corp. is set to receive $1.1 billion in a transaction involving the sale of its stakes in two Saudi Arabian aluminum plants. The deal with Saudi Arabian Mining Co. (Maaden) will see Alcoa divest its interests in a bauxite facility and an aluminum smelter, receiving 563 million riyals ($150 million) in cash and 3.6 billion riyals in Maaden stock.
Once the deal is finalized, Maaden will fully own the aluminum operations, and Alcoa will retain a 2.2% stake in Maaden. Alcoa Chief Executive Officer William Oplinger emphasized that the transaction simplifies the company’s portfolio, enhances the visibility of its investment in Saudi Arabia, and provides greater financial flexibility, which is crucial for improving long-term competitiveness.
The joint venture between Alcoa and Maaden was established in 2009 to develop a $10.8 billion complex including a bauxite mine, refinery, and smelter, as part of Saudi Arabia’s strategy to diversify from oil and leverage its natural resources. Maaden has become a key player in the kingdom’s efforts to establish itself as a major hub for metals and minerals, essential for the energy transition and electric vehicles.
Maaden has also expanded its global footprint, recently forming a joint venture with Saudi Arabia’s sovereign wealth fund and acquiring a 10% stake in Vale SA’s base metals unit last year. Bob Wilt, Maaden’s CEO, highlighted that streamlining the management of its aluminum business is a crucial step in preparing for future growth and reinforcing the mining sector as a key component of the Saudi economy.
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