Divesting Gramercy Alumina and St. Ann Bauxite
Posted by tjdetai on January 4th, 2016
* To transfer ownership stakes to Noranda Aluminum* Divesting Gramercy Alumina and St. Ann Bauxite* Century stock rises 4 pct NEW YORK, Aug 4 (Reuters) - Century Aluminum Co said on Tuesday it is divesting its stakes in a Louisiana alumina plant and a Jamaican bauxite mine, which are currently operating at 50-percent capacity or less.The Monterey, California-based company said the transaction will allow it to focus on its aluminum smelting business at a time when metal prices are beginning to rebound from an economic downturn that dried up demand, forced production cuts and sent prices diving.Century Aluminum stock rose 41 cents, or 4.24. percent, to .07 in morning trading on Nasdaq.Century Aluminum said it will transfer its 50-percent ownership of Gramercy Alumina LLC and St. Ann Bauxite Ltd to subsidiaries of privately-held Noranda Aluminum Holding Corp.Century will make "modest cash payments" to Louisiana-based Gramercy as part of the transaction, which is expected to close this month. A spokesman declined any further comment.Century said it will also enter into an agreement under which it will purchase alumina -- a raw material produced from bauxite and smelted into aluminum -- from Gramercy for a limited period. Century's aluminum smelter in Hawesville, Kentucky, receives all its alumina supplies from Gramercy."This transaction will increase our focus on Century's core aluminum smelting business and our attractive growth projects," said President and Chief Operating Officer Wayne Hale.
He said that current curtailments of aluminum production at its Ravenswood, West Virginia and Hawesville smelters have reduced alumina requirements."We have attractive contracts in place which will supply our alumina needs over the next several years," Hale said in a statement.Noranda, owned by affiliates of Apollo Management, L.P., said it has agreed to release Century from certain obligations. It did not elaborate."Our action to become the sole owner of the Gramercy alumina refinery and the St. Ann bauxite mining operations is consistent with our vertical integration strategy and our continuing desire to have a secure strategic supply of alumina," said President and Chief Executive Officer Layle "Kip" Smith.He said owning 100 percent of the two operations represented an opportunity "to enhance profitability as market pricing improves."Since the economic downturn last year, aluminum prices have tumbled from a peak of ,380 per tonne in July 2008. The metal was selling at around ,940 on the London Metal Exchange on Tuesday.
More info:monel k500
About the Authortjdetai
Joined: June 29th, 2015
Articles Posted: 104
Claim 1 FREE Stock! No Purchase Necessary!
You have a 100% chance of receiving one free stock! Click to claim and have a chance to get one share of Facebook, Visa, Microsoft and others for free!
FREE App - Earn up to 25¢/gal cash back on gas!
Download this FREE app and earn cash-back when you buy gas, groceries and food! 100% FREE to join and FREE to earn cash back on your everyday purchases!
Quality Office Furniture USA Shipped Direct - Madison Liquidators
Nationwide vendor of quality office furnishings including Desks, Office Chairs, Conference Tables, Cubicles and more!
Earn HNT Tokens with a Helium Hotspot!
Pre-Order a Helium hotspot and earn HNT tokens that are redeemable for USD. Set it and forget it!
Lolli: Earn Free Bitcoin When You Shop Online!
Lolli is a rewards application that gives you bitcoin for shopping at your favorite online stores.
Fold - Earn free bitcoin when you shop
Earn bitcoin cashback rewards when you shop at top retailers, including Amazon, Uber, Starbucks, Chipotle, and more. Download the app, sync your payment method and start earning bitcoin today!