Noranda to complete US$8-m port expansion by month end

NORANDA Aluminum expects to complete a US$8-million port expansion at its bauxite facility in Discovery Bay, St Ann by the end of this month.

In its latest filing to the US Securities and Exchange Commission, accompanying documents indicating that its majority shareholder — Apollo — may sell out its shares, Noranda said that the expansion, which began late last year, will "allow us to increase shipping volumes and lower our costs, while supporting the new contract with our third party bauxite customer".

"We spent approximately US$2 million on the port expansion during fourth quarter 2010 and expect to conclude the project during first quarter 2011," said the financials.

What's more, the company said it "reached agreement with the GOJ to mine 5.4 million (tonnes) during each of the years 2011 and 2012," which will up its current output capacity by 20 per cent.

At present, Noranda has a concession that ensures access to sufficient reserves to allow the company to ship 4.5 million dry metric tonnes of bauxite annually from mining operations in the specified concession area through September 30, 2030.

"The GOJ is required to provide additional concessions if the specified concession does not contain sufficient quantities of commercially exploitable bauxite," added Noranda in its filings.

Noranda Jamaica Nauxite Partners (NJBP), which is 49 per cent owned by Noranda and 51 per cent owned by the Government, exports approximately 60 per cent of its bauxite to Noranda's alumina refinery in Gramercy, Louisiana, with the balance sold to Sherwin Alumina Company.

According to its latest financials, it shipped 482,900 tonnes of bauxite from Jamica to a third party in 2009, while in 2010, shipments to a third party totalled 1.74 million tonnes.