The US government is acquiring a stake in Atlantic Alumina Co. (ATALCO) to create a major gallium producer as part of a strategic partnership. This is reported in the ATALCO press release.
As part of the deal, the U.S. Department of Defense entered into an agreement with ATALCO, a subsidiary of Pinnacle Asset Management L.P., to acquire preferred shares worth $150 million.
Together with the $300 million provided by Pinnacle, which is focused on strengthening the supply chains of critical minerals for the United States, the investment will focus on increasing alumina production and the creation of the first gallium production line in the United States. In addition, the U.S. government will provide additional financing within 30 days of the completion of the transaction.
The deal is in line with the US strategy to strengthen national security through direct investments in gallium production facilities, an essential mineral needed for the production of advanced satellite systems and military radars. The partnership will reduce dependence on foreign supplies of critical minerals, including China, which dominates the alumina and gallium markets.
Atlantic Alumina Co. — the only alumina producer in the USA. The company also processes bauxite into alumina near New Orleans. Discovery Bauxite Operations Limited (DBOL) is a part of Atlantic Alumina and is engaged in mining under the joint venture Discovery Bauxite Partners. The headquarters is located in Gramercy, Louisiana.
Pinnacle Asset Management is an American alternative asset management company in the global commodity markets. Pinnacle manages assets worth $6 billion. Pinnacle is headquartered in New York (USA).
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