In its press release dated January 12, 2007, Global Alumina Corporation (the “Company”) (TSX: GLA.U) announced an extension to February 15, 2007 of the negotiations to form the joint venture to develop and operate the Company’s alumina refinery project in the Republic of Guinea (the “Project”) with the BHP Billiton group (“BHPB”), Dubai Aluminium Company Limited (“DUBAL”) and Mubadala Development Company PJSC (“Mubadala”).
The Company is pleased to announce that following meetings between the parties in January 2007, negotiations with respect to the Project have been substantially advanced and are expected to be completed by February 15, 2007. The agreements will then be subject to the approval of the management of BHPB and the Boards of the Company, DUBAL and Mubadala.
The board of directors of the Company has formed an independent committee to consider the proposed transactions in connection with the Project and make a recommendation to the Board of the Company.
BHPB is world’s largest diversified resources company and the world’s sixth largest producer of primary aluminum, with a total operating capacity in excess of one million tonnes of aluminum, approximately 14 million tonnes of bauxite and four million tonnes of alumina per annum.
DUBAL is the owner of one of the largest single site aluminum smelters in the western world. DUBAL, which is wholly owned by the Dubai government, produces and exports primary aluminum products to more than 40 countries world-wide. DUBAL is also party to a subscription agreement with the Company dated August 10, 2005, a copy of which is available on the Company’s reference page at www.sedar.com.
Mubadala Development Company is a principal investment company wholly owned by the Government of Abu Dhabi, with a mandate to establish new businesses and acquire (wholly or partly) existing businesses either in the UAE or abroad. Mubadala invests in a wide range of strategic sectors including energy, utilities, health, real estate, public-private partnerships, basic industries and services. The company’s goal is to diversify and further develop the rapidly growing economy of Abu Dhabi, while achieving solid returns on commercially viable investments.