Alcoa Separation Information

In September 2015 Alcoa announced a plan to separate into two public traded companies. Alumina Limited and Alcoa Inc. announced on 2 September 2016 that they have agreed to make certain changes to the Alcoa World Alumina and Chemicals ("AWAC") joint venture that will enhance value for Alumina, Alcoa, and their respective shareholders.

In general, the changes to the joint venture agreements were intended to align more closely the partners’ interests in AWAC, while establishing greater strategic flexibility and autonomy for both partners.

Effective upon the completion of Alcoa’s separation, certain changes were made to the governance and financial policies of the joint venture, intended to enhance the cooperation between the shareholders.

These changes promote faster decision-making, joint input on significant decisions, improved information sharing and a more streamlined process for resolving disputes. The changes  also simplify AWAC’s dividend and cash management policies and require that AWAC raise a limited amount of debt to fund future mutually agreed growth projects.

Alumina Limited public releases
AWAC Agreements
Copies of the main agreement are available as PDF files.

The main AWAC Agreements are the “Formation Agreement” and the “Charter of the Strategic Council”.