The success of a deal at the Burnside transport terminal prompted global commodity trader Trafigura PTE Limited and aluminum producer Ormet Corp. to search for more joint investments in projects in the bauxite, alumina and aluminum industry.
The companies announced a new venture Thursday combining Trafigura’s global experience in mining, commodities trading and logistics with Ormet’s aluminum-related production expertise.
The companies say they are successfully working together at the Burnside terminal, where Trafigura loads and unloads shipments for Ormet’s alumina refinery.
Trafigura bought the adjacent bulk terminal from Ormet in 2011 for $28 million and plans to spend $100 million and is making a considerable investment to transform it into a state-of-the-art facility for handling coal, bauxite and alumina shipments.
“We’ve agreed this venture at a crucial time for the global aluminum industry. Although this sector continues to grow, some of its major players are divesting non-core asset,” Trafigura director Simon Collins said in a news release. “The combination of Trafigura’s world-wide reach and Ormet’s industry expertise will identify key investment opportunities and demonstrates our joint commitment to meeting market needs.”