Dada Holdings LLC has sold a controlling stake in the Noranda Alumina refinery at Gramercy, Louisiana, as well as its associated bauxite mine in St Ann, Jamaica, to UK-based Concord Resources Holdings Limited.
A press release issued by New Day said the company has sold the majority stake in New Day’s principal holdings, which include its Noranda Alumina refinery and NICHE Chemical non-metallurgical alumina business in Gramercy, Louisiana, as well as its Noranda Bauxite mine operations in St Ann, Jamaica — owned in partnership with the Government of Jamaica.
Concord, a minority partner in New Day since 2018, acquired the majority interest from other shareholders in the DADA Holdings Group. New Day’s headquarters will remain in Gramercy, Louisiana.
Concord Resources Ltd is a commodity merchant trader seeking to challenge the dominance of Glencore Plc and Trafigura Group in metals markets, and said the acquisition represented its first major asset.
The deal ensures control of the US alumina plant and the Jamaican mine. Concord previously bought a 12 per cent stake in the business in 2018.
Dada Holdings got hold of these operations back in 2016, when Noranda’s parent company, Noranda Aluminum Holding Corporation, received court approval to sell the operations to DADA Holdings LLC, under its affiliate New Day Aluminum LLC, for a purchase price of US $24.4 million.
The Jamaican Government has partial ownership in the company, which employs more than 800 people, and has the capacity to produce up to 5.2 million metric tonnes of premium-grade bauxite annually.The company secured a 25-year agreement.
The new deal is expected to give Concord access to an additional 600,000 tons of alumina per year on top of the 1.4 million tons it already handles and make it one of the world’s leading traders of alumina, the key raw material for making aluminum, alongside the likes of Glencore and Trafigura.
Aluminum prices have surged along with other metals amid booming demand from the construction and manufacturing sectors as the global economy rebounds.
The New Day release said John Habisreitinger will remain with New Day as president, reporting to Concord’s CEO Mark Hansen.
“New Day is grateful for the resources that DADA Holdings has dedicated to repositioning the business since they acquired it in 2016,”said John Habisreitinger, “and we are extremely excited about the industry experience, global reach, and potential that Concord brings to the business.”
Concord Resources is a global resources company founded in 2015. The company is headquartered in London with representative offices in New York, Connecticut, and Hong Kong.