Xstrata sells off aluminium unit

Xstrata is one of the world’s largest coal miners

Mining group Xstrata has sold its aluminium operations to a private equity firm for $1.15bn (£580.8m).Under the cash deal, New York-based Apollo Management will takeover Xstrata’s assets in the US and Jamaica.

The deal is expected to be completed in the second quarter of the year, Swiss-based Xstrata said.

The announcement came hours after Xstrata said it had agreed to buy Australian mining group Gloucester Coal for about $319.2m.

“Gloucester Coal’s operations further extend the life of Xstrata’s New South Wales mines, with good potential to add to the resource and reserve base,” Xstrata coal chief executive Peter Coates said.

Xstrata added that its decision to sell its aluminium assets came after an in-depth review of the business it began after it took control of Canadian-based mining group Falconbridge in 2006.