(By Balachander) Alcoa Inc. (NYSE:AA) has agreed to sell Rockdale, Texas site to the Lower Colorado River Authority (LCRA). Financial terms of the deal were not disclosed.
The largest U.S. producer of aluminum temporarily curtailed smelting operations at Rockdale in 2008, and permanently closed two of six lines early this year.
LCRA's General Manager Becky Motal said the Alcoa property could add as much as 45,000 acre-feet per year in surface and groundwater, which could serve LCRA's customers and preserve more water in the Highland Lakes.
The Alcoa property has significant surface water rights and is situated atop a prolific groundwater aquifer, LCRA said.
The agreement includes roughly 34,000 acres of property, all surface and groundwater rights, certain facilities and equipment, and an Alcoa power contract. The purchase by LCRA does not include the Alcoa aluminum smelter or aluminum powder plant.
The sale is expected to be completed by early next year.
LCRA delivers electricity, manages the water supply and environment of the lower Colorado River basin, develops water and wastewater utilities, provides public recreation areas, and supports community and economic development.
AA shares were trading at $8.75, up 0.69 percent on Wednesday.