Sep. 2, 2009 (Business Wire) -- Noranda Aluminum Holding Corporation (“Noranda” or the “Company”) yesterday announced that it had become the sole owner of Gramercy Alumina LLC (“Gramercy”) and St. Ann Bauxite Limited (“St. Ann”) (formerly each owned 50% by Century Aluminum Company (“Century”). St. Ann operates a Jamaican bauxite mine and related facilities pursuant to a partnership agreement with the Government of Jamaica and supplies Gramercy’s bauxite requirements. The Gramercy alumina refinery supplies substantially all of the alumina used at Noranda’s New Madrid smelter.
Layle K. “Kip” Smith, Noranda’s President and Chief Executive Officer, commented today as follows: “We are pleased to have completed this transaction, which advances our vertical integration strategy. Bauxite and alumina are critical raw materials for Noranda, and 100% control of the operating assets in St. Ann and Gramercy provides us security of supply and long-term cost competitiveness for these essential raw materials. We thank Century for its strong partnership support over the last five years.”
“The support of the Government of Jamaica continues to be critical to the success of St. Ann’s operations,” he added. “We look forward to continuing and strengthening our partnership with the Government of Jamaica as we build a sustainable foundation for our integrated business in Jamaica.”
Noranda also announced today that in order to support increased customer demand, Gramercy and St. Ann will both immediately increase production. “We are very excited to be increasing our output during these difficult times,” said Larry Holley, President of Gramercy and St. Ann. “The ramp-up at these sites will support our key constituents, including customers, suppliers, employees and communities. The support of Noranda by the Government of Jamaica has been critical to our decision to increase production.”
Production capacity of alumina and bauxite at Gramercy and St. Ann is approximately 1.2 million metric tons and 4.5 million metric tons, respectively. The ramp-up of production at both locations is expected to be completed during the fourth quarter of 2009.
Forward-looking Statements
This press release may contain “forward-looking statements” which involve risks and uncertainties. You can identify forward-looking statements because they contain words such as “believes,” “expects,” “may,” “should,” “seeks,” “approximately,” “intends,” “plans,” “estimates,” or “anticipates” or similar expressions that relate to Noranda’s strategy, plans or intentions. All statements Noranda makes relating to its estimated and projected earnings, margins, costs, expenditures, cash flows, growth rates and financial results or to the Company’s expectations regarding future industry trends are forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made and which reflect management's current estimates, projections, expectations or beliefs and which are subject to risks and uncertainties that may cause actual results to differ materially. Noranda undertakes no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.
Noranda's actual results or performance may differ materially from those suggested, expressed or implied by forward-looking statements due to a wide range of factors including, without limitation, the general business environment, fluctuating commodity prices and the Company’s ability to return its New Madrid smelter to full capacity. For a discussion of additional risks and uncertainties that may affect the future results of Noranda, please see the Company’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K.
About the Company
Noranda Aluminum Holding Corporation is a leading North American integrated producer of value-added primary aluminum products, as well as high quality rolled aluminum coils. Noranda is a private company owned by affiliates of Apollo Management, L.P.
