Lawsuits filed against LAlumina LLC by several contractors

LAlumina LLC, which operated the Burnside Alumina until it was shut down in August’20 and laid off hundreds of workers has been charged and filed by lawsuits by several contractors.

The contractors filed lawsuits against LAlumina soliciting money after they claim agreements for goods and services were broken. As per the records, they are collectively seeking more than $3.3 million from the company.

Gonzales-based TMA Environmental, Baton Rouge-based Environmental Specialties International and Providence Engineering and Design; Albuquerque, New Mexico-based Summit Electrical Supply Co.; Clayton, Mississippi-based Olin Corp. and Dubai-based Mur Shipping BV are the lists of contractors filed lawsuits.

In September’20, LAlumina shut down its operations within a year of acquiring the alumina refinery. LAlumina had been awarded $7.2 million through the federal Paycheck Protection Program to support payroll expenses, but it laid off 300 workers when it closes down the refinery, mentioning a slump in market conditions worsen by the Covid-19 pandemic.

LAlumina is a company affiliated with Arthur Metals, an independent start-up business co-founded by former British multinational mineral trading business Glencore alumina traders Matt Lucke and Zach Mayer. Arthur Metals acquired the Burnside Alumina site for an undisclosed price in July 2019 from Almatis.

Concurrently, the company is still negotiating with the United Steelworkers union over supplemental unemployment benefits and other contract details. The plant shut down while the union contract was still in effect and the union alleges that the company could be liable for millions in benefits. The union had filed a complaint with the Nation Labour Relations Board but withdrew it in recent months to negotiate through arbitration by filing a grievance.