| TOKYO (June 7, 2002) - Kobe Steel, Ltd. has signed an agreement with Comalco Limited, a wholly-owned subsidiary of Rio Tinto Limited, to sell its 9.5% interest in Boyne Smelters Limited to
Comalco. Boyne is an aluminum smelter at Gladstone in Queensland, Australia. The value of the transaction is approximately US$78.5 million. The deal is anticipated to close in the third quarter of 2002. The Boyne smelter has three reduction lines. Operation of reduction lines 1 and 2 began in 1982 and reduction line 3 was later added in 1997. In 2001, Boyne produced 509,000 metric tons of saleable aluminum. Kobe has a 9.5% interest in reduction lines 1 and 2, which together produced 273,000 metric tons of saleable aluminum. Kobe has no investment in reduction line 3. Kobe Steel invested in overseas projects to obtain stable sources of aluminum, but is now reducing its upstream business and is concentrating on its core aluminum rolling business. In March 2002, Kobe Steel transferred a portion of its equity held in affiliate Kobe Alumina Associates (Australia) Pty. Ltd. to ITOCHU Corporation. Kobe Alumina Associates has a shareholding in Worsley Alumina Pty Ltd, an alumina refinery in Western Australia. The transaction is subject to certain approvals, including the Foreign Investment Review Board and the consent of the other Boyne Smelters' participants. Comalco Limited is a major supplier of bauxite, alumina and primary aluminum to Australia, New Zealand and export markets. Sales turnover in 2001 was US$1,499 million. Comalco is headquartered in Brisbane, Australia and has approximately 3,400 employees. Its chief executive is Sam Walsh.
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SLM group includes Sumitomo Light Metals, Marubeni and Sumitomo Corporation. |
