Noranda obtains project financing to complete New Madrid rod mill

Noranda Aluminum Holding Corporation announced today that it has obtained $15 million of project-specific financing that will allow it to complete a state-of-the-art redraw rod mill at its aluminum smelter in New Madrid, Missouri ("New Madrid"). The new rod mill will increase Noranda's production capacity by approximately 43% and will exemplify the latest cutting-edge technology in the North American marketplace. The rod mill is geographically located in an advantageous section of North America which affords customers shorter transportation distance and lower freight costs. Consequently the Company has already received interest from customers for a majority of the new rod mill's capacity.

The Company expects the new Rod mill to cost approximately $55 million, of which approximately $15 million remains. The Company expects production at the mill to begin during the second quarter of 2016.

"Obtaining financing to complete the rod mill is another positive step for Noranda as we continue to execute our key strategies of optimizing our integrated platform and maximizing our value-added products," said Layle K. "Kip" Smith, the Company's President and Chief Executive Officer. "The recent ruling by the Missouri Public Service Commission (the "PSC") to reduce Noranda's electricity rate for the smelter was a major factor in successfully obtaining financing for the rod mill. The lower rate structure is a key factor that supports the New Madrid smelter's viability making New Madrid the appropriate venue for the rod mill."

"The achievement of these and other key initiatives is part of our ongoing CORE (Cost-Out, Reliability and Effectiveness) program which provides Noranda a solid foundation from which to operate sustainably and grow through the aluminum cycle. Despite continued volatility in prices, we believe aluminum's long-term fundamentals remain positive. As we look forward, we remain focused on achieving operational excellence, making further improvements to our cost structure, and making accretive investments in our integrated platform."

On April 29, 2015 the PSC established a reduced electricity rate structure for the Company's aluminum smelter in New Madrid. At full production, the new structure is expected to reduce New Madrid's annual power cost by approximately $17 to $25 million or $0.03 to $0.04 per pound of primary aluminum sold. The lower rate structure became effective on or around June 1, 2015 and carries a term of at least three years.