CHICAGO Ormet Corp. has inked a pact to sell about 32,000 tonnes of alumina to Glencore Xstrata Plc for $8.44 million.
The bankrupt Hannibal, Ohio-based aluminum producer is seeking court approval to sell the calcined metallurgical-grade alumina, valued at $263.75 per tonne, from its Burnside, La., refinery to Baar, Switzerland-based Glencore, according to court documents dated Nov. 14 and filed in U.S. Bankruptcy Court in Delaware.
The material is to be delivered to a Glencore vessel anchored midstream at the St. James, La., terminal of the Mississippi River, per an asset purchase agreement, also dated Nov. 14, and signed by Ormet commercial vice president Matthew T. Powell and Glencore trader David Streule.
Ormet said in court documents that the move is part of its efforts to sell excess assets.
The company has said those assets include raw materials such as alumina, anodes, caustic soda and bauxite, as well as finished goods. In addition, Ormet has said it is looking to sell excess equipment, office furniture, fixtures, vehicles and property (amm.com, Oct. 16).
Ormet has already received court approval to sell the Burnside refinery to Leetsdale, Pa.-based alumina producer Almatis Inc. for about $39.5 million (amm.com, Nov. 12).