Century Aluminum and Noranda Alumina have come to an agreement over the sale of Jamaican bauxite. The deal was announced by Noranda on Wednesday, according to Jamaican media.
The contract has Noranda supplying Century with essentially all the high-grade bauxite the latter shall require for its smelters in Hawesville and Sebree, Kentucky. No dates were described in local media coverage, but the agreement was characterized as a long-term one.
Noranda’s chairman and chief executive officer David D’Addario, who is also managing partner of its parent company DADA Holdings, said that the contract is an important milestone for the company.
DADA’s management group indicated at the time it acquired Noranda that it would find stable, long-term outlets for the lion’s share of its alumina production. Speaking on the contract in question, the firm says this is a suitable contract upon which it can continue to build Noranda’s alumina refining operations.
Noranda entered into an asset-purchase agreement with Florida’s DADA Holdings LLC in October last year, establishing the latter’s affiliate New Day Aluminum LLC as the “stalking horse” bidder for a court-supervised sale of Noranda’s alumina refinery in Gramercy, Louisiana, and the firm’s bauxite mining operation in St. Ann, Jamaica. DADA is a management company based in Fort Lauderdale, Florida, made up of the former senior management team of Wise Metals Group LLC, which was purchased by Constellium in 2015.
Noranda Aluminum Holding Corporation (“Noranda HoldCo”) was formed in 2007 by Apollo Management, L.P., in order to acquire a portion of the aluminum business of Xstrata (Schweiz) AG. Before being acquired by Apollo Acquisition, Noranda existed as a subsidiary of Xstrata. Prior to Xstrata, Noranda was a subsidiary of Falconbridge Limited in Toronto, Ontario, Canada. The company filed for Chapter 11 bankruptcy protection last February and was eventually split among Gränges AB, ARG International AG, DADA Holdings LLC, and New Day Aluminum.