Noranda issues statement on New Madrid smelter

NEW MADRID - Production at Noranda's aluminum smelter remains reduced as officials assess the cause of an electrical circuit failure.

Shortly after 1 p.m. Thursday, according to Noranda officials, the electrical supply circuit failed. Although no serious injuries were reported, the failure reportedly idled two of the plant's three pot lines.

"Noranda is assessing the incident to determine its root cause. The third pot line was not directly affected and production in that line has continued," according to a news release.

Company officials noted its flat-rolled products business sources metal from a portfolio of suppliers which should provide enough aluminum to meet customer commitments for flat-rolled products. The company is evaluating its ability to meet customer commitments for its primary aluminum value-added products, officials stated.

The company has not yet reported a timeline for resuming production in the two idled pot lines. The Company is taking steps to move to a one pot line operation and to adjust staffing and other activities to match the lower level of production at the smelter, according to the release.

Also Noranda is reviewing the impact to alumina production at its refinery in Gramercy, Louisiana and its bauxite mining operation in St. Ann, Jamaica.

No estimates are available regarding the financial impact of the incident. However, company officials said they anticipate a substantial portion of costs and damages resulting from the incident will be covered by property and business interruption insurance.