S&P Global Platts

Author: Joe Innace
Editor: Norazlina Jumaat
Commodity: Metals

Singapore — Russia’s Rusal, the world’s second largest producer of primary aluminum, and US-based Braidy Industries have signed a letter of intent, which will make Rusal a strategic partner in Ashland, Kentucky’s Braidy Atlas aluminum mill, with Rusal investing up to $200 million, the two companies said Sunday.

The $200 million letter of intent is viewed as the “strategic, cornerstone investment that paves the way for the nearly $1.7 billion total investment,” Rusal and Braidy executives said.

Rusal and Braidy also have negotiated an exclusive 10-year supply contract under which Rusal will supply aluminum slab and P1020 to the Kentucky mill, officials told S&P Global Platts. That contract’s estimated value would be “approximately $500 million per year at today’s [primary aluminum] prices,” Braidy CEO Craig Bouchard said.

“We are very fortunate to have the best smelting company in the world join us as our partner and as our lead, exclusive supplier,” Bouchard added, continuing, “No other company could have supplied us with the low-carbon slab, prime aluminum contract that we’ve negotiated.”