Jamalco future unclear as Noble Group restructures

THE NOBLE Group will move its stake in Jamalco along with other non-core assets, to a new subsidiary as part of a restructuring plan to turn around the loss-making company.

The group will operate two main entities under a new holding company, referred to as New Noble — an asset company which will hold investments such as Jamalco; and a trading company for the group’s core businesses. The precise timeline for execution of the plan is unclear.

The company said in its financial report released this week that Jamalco was one of its well-performing assets, but gave no details on what the restructuring might mean for the future ownership of the alumina company, over which it has management control.

Noble Group, which is headquartered in Hong Kong, but listed on the Singapore stock market, manages a portfolio of global commodities covering industrial and energy products. It holds a 55 per cent stake in Jamalco, with jointventure partner Clarendon Alumina Production Limited, a company owned by the Jamaican Government, holding the other 45 per cent.

In its most recent earnings report released this week, Noble said it would separate New Noble’s interests in Harbour Energy, Jamalco, Noble Plantations and its vessels from the group’s core business, which includes, but is not limited to, its hard commodities, freight and LNG businesses “such that there is an effective ring-fencing”.

Efforts at comment from Jamaican bauxite and government officials as to what the restructuring implies for Jamaica were unsuccessful.