Green River Star -

By David Martin
Editor 

Mine purchase finalized

 

September 6, 2017



Genesis Energy L.P. announced Friday it completed its acquisition of the Tronox Alkali mine west of Green River.

“We’re expecting business as usual,” Dave Caplan, director of corporate communications for newly-formed Genesis Alkali, said. “We’re excited to begin our new journey with Genesis.”

According to a corporate press release issued Friday, the mine was purchased for $1.325 billion.

The mine is the world’s largest producer of natural soda ash, which is used in a number of commercial and industrial products, including glass and detergent.

“Genesis Energy, L.P. is a diversified midstream energy master limited partnership headquartered in Houston, Texas. Genesis’ operations include offshore pipeline transportation, onshore facilities and transportation, refinery services and marine transportation. Genesis’ operations are primarily located in Texas, Louisiana, Arkansas, Mississippi, Alabama, Florida, Wyoming and the Gulf of Mexico,” the release states.

Genesis announced it planned to acquire the mine Aug. 2.

Tronox purchased the mine April 1, 2015, from FMC at a price of $1.64 billion, paid for with approximately $1 billion in cash and $600 million in debt. The sale of its alkali business was done to aid Tronox’s position in the titanium dioxide industry. Tronox announced it would acquire Cristal, a titanium dioxide company headquartered in Kuwait, in February. In its announcement, the company announced its intent to sell the alkali business in Green River to help fund its acquisition.

“The sale of Alkali Chemicals is an important step in positioning Tronox as the global leader in the titanium dioxide (TiO2) industry. The proceeds will be used to fund the majority portion of the cash consideration for the acquisition of the TiO2 assets of Cristal, which is expected to close by the first quarter of 2018,” Tronox chief executive officer Peter Johnston said in a press release.

“Our intent to sell Alkali comes at an attractive time as the global market for natural soda ash is recovering and prices are improving,” Tom Casey, Tronox chairman and CEO said at the time. “Alkali has continually sold every ton of product it produces. The caliber of the Alkali workforce and their commitment to safe, high-quality production are unmatched in the natural soda ash industry. I thank the leadership team and all Alkali employees for their contributions to Tronox,” Casey said.

 

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