This particular “For Sale” sign is not in front of one of the Pacific Aluminium smelters. Nor is it in front of the Noranda smelter in New Madrid, Missouri, despite today’s headlines.
The Aluminij Mostar smelter in Bosnia is up for sale. Or at least the 44% that the government of Bosnia owns is up for sale. The government there has announced that it is looking to raise funds. When asked about the dubious timing of the sale, with LME prices falling to 12-month lows, the Bosnian Prime Minister is reported to have said, “The sooner the better. We need the funds.” The balance of the ownership is held by the workforce and a government privatisation fund.
The smelter produces about 160,000t per year, and is a little over 40 years old. The company reported a net profit in Q1 2015 of about 2 million Euros.
Meanwhile, Noranda has hired some advisors to map out some strategic alternatives for the future. The announcement caused the Noranda share price to fall, as some interpreted the announcement that the smelter was being put up for sale. Noranda says it has ruled nothing in or out.
If someone was in the mood to buy into aluminium production, there’s plenty of options in the “Used smelter” lot. Trouble is, it’s hard to find anyone remotely interested.
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