Trafigura AG has closed on a $200-million tax-exempt long-term
bond to pay for the development of its terminal in Burnside,
La., which also serves bankrupt aluminum producer Ormet
Once the work is
complete, the Burnside terminal will be one of the top coal and
bulk logistics facilities in the United States and the only one
on the Mississippi River offering both barge-to-vessel and
rail-to-vessel capabilities, Trafigura said June 13.
The Swiss trading
house noted that the Burnside terminal, operated by subsidiary
Impala Warehousing (US) LLC, already receives regular shipments
of bauxite and coal from the companys barge fleet.
"With this successful
entry into the United States tax-exempt financing market, the
company continues to find new markets very receptive to
Trafiguras business model and growth," Bryan Keogh, chief
financial officer of Trafiguras North American
operations, said in a statement.
Impala acquired the
Burnside terminal from Hannibal, Ohio-based Ormet in June 2011
for $28 million. The bulk terminal also ships alumina and
bauxite, including offloading and discharging material for
Ormets refinery in Burnside (
amm.com, June 3, 2011).
A 30-year terminal
services agreement (TSA) was included as part of the sale to
provide reliable loading and unloading services to the refiner.
The agreement became a matter of contention in Ormets
recent bankruptcy proceedings, with Impala last month raising
concerns about the sale of the company to stalking horse bidder
Smelter Acquisition LLC, according to documents filed in U.S.
Bankruptcy Court in Delaware.
Impala noted in its
objection that in addition to the "heavily negotiated" TSA,
Trafigura and Ormet in May 2012 signed an agreement to jointly
develop business opportunities in the aluminum industry. In
addition to Impala providing services to Ormet worth "millions
of dollars" annually, the companies are physically linked, for
example, by Ormet operating a potable water plant that services
both the Burnside refinery and the Impala terminal, the
additional financial information about Smelter Acquisition and
assurances that the company would honor contracts negotiated
The sale to Smelter
Acquisition, a company owned by Wayzata (Minn.) Investment
Partners LLC, was approved by the bankruptcy court earlier this
amm.com, June 4). Ormet filed for bankruptcy
protection in February, citing high legacy and power costs, as
well as low aluminum prices (
amm.com, Feb. 26).