Halco

March 24, 2005 11:07 ET

Halco to Discuss CBG Supplying Global Alumina with Bauxite


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: HALCO

MARCH 24, 2005 - 11:07 ET

Halco to Discuss CBG Supplying Global Alumina with
Bauxite

NEW YORK--(CCNMatthews - Mar 24, 2005) -

Halco (Mining) Inc. today announced it will begin discussions with
Global Alumina Ltd., regarding the supply by Compagnie des Bauxites de
Guinee (CBG) of bauxite to Global Alumina's planned alumina refinery in
Guinea. Bauxite is the mineral that is refined into alumina in order to
produce aluminum.

Halco is the 51 percent owner of CBG, which mines bauxite in the Boke
region of the Republic of Guinea. Halco manages the mining operations.
The Government of the Republic of Guinea is Halco's partner in CBG.
Alcan Inc., Alcoa World Alumina and Chemicals and Dadco are the
shareholders of Halco.

CBG has exclusive rights through 2038 to bauxite reserves and resources
in a 10,000 square mile area in the northwestern part of Guinea. Alcan,
Alcoa World Alumina, Dadco and certain affiliates acquire CBG bauxite
for use in their individual businesses.

"We see this as a major step forward for CBG and for Guinea," said Kurt
Thurnherr, chairman of Halco. "For more than 40 years, CBG has been
exporting bauxite to refineries all over the world. This opportunity,
along with ongoing discussions with Alcan and Alcoa over the supply of
bauxite to their joint alumina refinery project, has the potential to
make CBG the world's leading bauxite mine."

Thurnherr added that one of the fundamental principles of the CBG Basic
Agreement is that it provides for CBG to be the supplier of choice for
bauxite to refineries such as these two. "With the increase in volume,
the cost effectiveness of CBG's operation will add significant value to
all shareholders, including the Government of Guinea as a major
shareholder in the bauxite operation," he said.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    For Alcoa-a 45% holder in Halco
    Kevin G. Lowery, 412-553-1424
    or
    For Alcan-a 45% holder in Halco
    Alexander Christen, 514-848-8154