US based Alcoa has booked US$95 million in restructuring charges arising from the sale of its stake in the Jamalco refinery.

“We also divested our share of the Jamalco mine and refinery in Jamaica, which accounts for US$95 million of the restructuring-related charges. Other charges related to the completion of closure activities at the rolling mills in Australia, and other actions taken across the organisation,” stated William Oplinger executive vice-president and chief financial officer in a notice to shareholders this month.

Despite the sale, Alcoa posted US$159 million in fourth quarter 2014 results or US$10 million more than a year earlier. Alcoa has embarked on a global restructuring plan aimed at divesting or rationalising higher cost production facilities which included operations in Jamaica.

Last year, Alcoa World Alumina and Chemicals (AWAC) finalised the sale of its 55 per cent ownership stake in the Jamalco joint venture in Clarendon to Noble Group Ltd for some US$140 million. Alcoa indicated that it would continue as Jamalco’s managing operator for three years under a compensated service agreement and employees would remain employed by Jamalco. AWAC is the joint venture owned, 60 per cent by Alcoa and 40 per cent by Alumina Limited of Australia.

Alumina Ltd indicated in December that “AWAC’s 2014 result is expected to include a pre-tax loss of approximately US$210 million to US$260 million arising from the sale. Alumina Limited’s share of the loss would be 40 per cent”.

Prior to the acquisition, Noble already secured up to 6.1 million tonnes of alumina from Jamalco’s output over a 12-year period through a US$120-million forward sale contract with Clarendon Alumina Production (CAP), a company wholly owned by the government, which owns the remaining 45 per cent.