Alum Tulcea Takes Over Vimetco’s Bauxite Mine In Sierra Leone

05.05.2011 By Florentina Dragu

Dutch-registered aluminum producer Vimetco Thursday said it has transferred its bauxite mining unit in Sierra Leone to its Romanian alumina producer Alum Tulcea (BBGA.RO), in a deal worth $30 million.

Alum borrowed $25 million from Raiffeisen Bank Romania to finance the transaction.

The company is 99.38%-owned by aluminum smelter Alro Slatina (ALR.RO), part of Vimetco group.

Alum reported net profit of 31.6 million lei ($11.4 million) in 2010, on total revenue of RON484 million. The company estimates a 68% increase in profit to RON53.3 million this year, while revenues are seen growing 25% to RON607 million.

On the Bucharest bourse Thursday, Alum's shares traded up 33.3% at RON4. ($1=RON2.7655)