Top executives of India's Sumangala Steel plan to visit the New Madrid area of southeastern Missouri on Tuesday as they attempt to reach a final decision about where to locate a new steel plant, a local official said Monday.
Richard McGill, New Madrid's city administrator, told S&P Global Platts in an interview that officials of the privately owned company are interested in meeting with potential suppliers and customers of the steel plant plus possible electricity providers -- "everybody that would be involved in hopefully getting a better picture if this would be the place for the mill."
In addition to Missouri, at least two other states are believed to be in the final running for the plant.
"Obviously, since a decision hasn't been made, there's still things to work out on a couple of different fronts," he said. "We think a site decision will come soon. The company is doing its due diligence and making sure everything is in order."
Citing a confidentiality agreement, McGill declined to say more about the steel plant except to express confidence "there hasn't been anything that's really hurt our chances" of landing the facility.
While in the area, Sumangala officials are expected to hold at least some talks in St. Louis, about 90 miles north of New Madrid.
"We're working hard this week to nail down infrastructure that is needed for the plant, how much it will cost and where that money will come from," McGill said.
McGill is optimistic that economically challenged southeastern Missouri will secure either the steel plant and/or the reopening of the long-idled, 263,000 mt/year former Noranda Aluminum primary aluminum smelter in New Madrid.
Noranda shut the smelter in March 2016 not long after it filed for Chapter 11 bankruptcy reorganization on February 8.
Switzerland-based ARG International, run by former Glencore trader Matt Lucke, subsequently bought the smelter for $13.7 million in a bankruptcy court-approved auction. ARG has formed Magnitude 7 Metals to try to reopen the smelter.
On June 15, Missouri Governor Eric Greitens cleared the way for Magnitude 7 Metals and Sumangala to seek lower electricity rates for their respective projects in southeastern Missouri by signing into law House Bill 1 after it was overwhelmingly approved by the state General Assembly.
The legislation allows the companies to petition the Missouri Public Service Commission for a reduced power rate for the steel plant and smelter.
As of yet, rate-related application has been submitted to the PSC, according to commission spokesman Kevin Kelly.
