NEWSBREAK - ARG wins auction for Noranda's New Madrid in $13.7 mln deal

Archie Hunterarchie.hunter@fastmarkets.comDeputy Head of Physicals+44 (0) 20 7337 2143

London 29/09/2016 - Swiss trader ARG International has won the auction for Noranda Aluminium's New Madrid primary aluminium smelter in a deal worth $13.7 million, FastMarkets understands.

In March, bankrupt Noranda closed the final potlines at New Madrid, which is located in Missouri, US, and which has nameplate capacity of 263,000 tonnes per year of primary aluminium.

The business is the first asset to be bought by Zug-based ARG, formed by former Glencore aluminium traders Matt Lucke and Zach Mayer in 2013.

New Madrid had been up for auction along with Noranda's upstream aluminium assets, which include a bauxite mine in Jamaica and an alumina refinery in Louisiana. But the offer was split after the company received an offer for the smelter from MFR.But when the New Madrid went to auction, MFR was outbid by ARG.

Once the smelter is brought back online, it will add more primary capacity to the US Midwest, which is currently awash with imports.

(Editing by Mark Shaw)

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