Noranda Selling New Madrid Aluminum Smelter

Noranda Aluminum, which initiated bankruptcy proceedings in February, has received court approval for the sale of its New Madrid, Missouri, aluminum smelter and facilities to ARG International for a purchase price of $13.7 million. The court approval followed an auction that took place on September 28. Noranda expected to close the transaction in October, subject to certain closing conditions.

The New Madrid smelter was shut down in March. The smelter is fully integrated, with its own raw material unloading facility, environmental control systems and aluminum reduction plant, including carbon anode fabrication. Production capacity totals about 250,000 mt/y of primary aluminum. The plant site also includes a fabrication facility for the production of continuous cast rod, extrusion billet and foundry ingot.

Noranda’s alumina refinery in Gramercy, Louisiana and bauxite mining operation in St. Ann, Jamaica, were not included in the auction for the New Madrid smelter and facilities. Noranda continues to explore strategic alternatives for the bauxite and alumina operations, including discussions with potential acquirers. Agreements, if any, would remain subject to auction and court approval.

ARG International did not issue a statement regarding purchase of the New Madrid smelter. The company is based in Switzerland and was founded in 2013 by a former Glencore aluminum trader.

As featured in Womp 2016 Vol 11 -