Montenegro accepts Rusal as buyer of KAP smelter

Montenegro declared Rusal the buyer of its sole aluminum smelter Kombinat Aluminijuma Podgorica (KAP). The government has yet to set a date for the signing ceremony, but it is expected around May 1. Rusal agreed to pay $27 mn on top of 48.5 mn euro ($62.50 mn) initially offered for the stake and 20 mn euros for the environment programme. It would also invest a further 55 mn euros in KAP over the next five years. Rusal agreed to purchase two thirds of the smelter's electricity needs from Montenegro's power monopoly at the price of $24.30 per megawatt hour between 2007 and 2009, allowing for adjustments to world aluminium and electricity prices. The company also assumed KAP's debt to creditors totalling $110 mn. (Reuters -04/15/05)

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