AWAC Agreements

Alumina Limited and Alcoa announced on 2 September 2016, that they agreed to make certain changes to the Alcoa World Alumina and Chemicals (“AWAC”) joint venture that will enhance value for Alcoa, Alumina, and their respective shareholders.

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

Certain changes to the governance and financial policies of the joint venture were made with the intention to enhance the cooperation between the shareholders. These changes will 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.

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”.