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Rio Tinto loses 2014 Sebree sales contract

Keywords: Tags  Rio Tinto Alcan, Sebree, Century Aluminum, Glencore Xstrata, commercial agreements, extrusion billet, remelt ingot, aluminum Michael Cowden

CHICAGO — Rio Tinto Alcan Inc. has been unable to negotiate a commercial agreement to source product from Century Aluminum Co.’s Sebree, Ky., smelter and casthouse beyond year-end, the company said.

"It was our strong desire to work out an arrangement with Century Aluminum in which Rio Tinto Alcan would continue to source product for our valued Sebree customers in 2014 and beyond," the Montreal-based aluminum producer said in a Sept. 17 letter to customers. "However, these negotiations did not result in an agreement."

Rio Tinto Alcan will now work to supply customers from its own smelter network, it said, adding that it would honor all current commercial agreements for sales of extrusion billet and unalloyed remelt ingot from Sebree through Dec. 31.

Market sources have told AMM that Baar, Switzerland-based Glencore Xstrata Plc has approached them about buying product from Sebree. A Glencore spokesman on Sept. 23 referred comment to Century.

"No news to report at this moment," a Century spokesman told AMM via e-mail.

Century acquired the Sebree facility from Rio Tinto Alcan in June (, June 3).

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