Noranda Aluminium Holding Corporation’s successor announced late last week an agreement to market and sell bauxite from its plants in Jamaica and Louisiana to London’s Concorde Resources.
DADA Holdings LLC made the announcement on Friday, explaining that the agreement would have Concorde Resources market bauxite mined at St. Ann in Jamaica to potential third-party buyers for a period of seven years. The agreement regarding its facilities in Gramercy, Louisiana is in the nature of an off-take arrangement for the entirety of the plant’s smelter-grade bauxite for an unspecified long-term duration.
Noranda’s CEO David D’Addario explains “that our partnership with Concord substantially changes the risk profile of our business by giving us a marketing partner to sell our product worldwide.”
“By combining our highly efficient production capabilities with Concord’s global marketing reach we will utilize each partner’s strengths to create a successful and profitable long-term relationship,” he continued.
For its part, Concord “look[s] forward to a long and successful partnership that will be the foundation of our global bauxite and alumina marketing business,” stated its CEO Mark Hansen.
This is a significant move forward for Noranda, as the company was acquired in the course of bankruptcy proceedings late last year by DADA for US$24.4 million.