$BNB Rusal has signed an agreement with Indian companies Pioneer and KCap to purchase the alumina plant Pioneer Aluminium Industries Limited with a capacity of 1.5 million tons per year, reported the Russian company.

Rusal's subsidiary (MCX:RUAL) will acquire up to 50% of Pioneer in three stages, including in the first stage — 26% for $243.75 million plus adjustments for the company's working capital and debt. All subsequent stages of the transaction will be paid pro rata. The sellers and Rusal intend to supply bauxite from Pioneer and receive alumina from it in proportion to their stakes.

Pioneer owns an alumina plant with a capacity of 1.5 million tons per year (with the potential to expand to 2 million tons) in the state of Andhra Pradesh, not far from the ports of Visakhapatnam, Gangavaram, and Kakinada. Rusal is forced to purchase more than a third of the required alumina on the global markets at exchange prices, the company clarified.