ASHLAND, Ky. — Braidy Industries Chief Executive Officer Craig Bouchard said the company is on track for opening its Atlas mill in 2021 with the company also on schedule for raising the necessary capital.
Bouchard said Tuesday the mill’s projected total cost is $1.7 billion. As of Tuesday $300 million has been raised and the majority of the remaining capital needed is now in hand in cash, binding commitments or letters of intent.
“Between the debt and equity markets the total cost of the mill is $1.7 billion,” Bouchard said. “In essence that is the raise between debt and equity to pay for it. Braidy Industries has raised over $300 million of cash equity to date. So we have had a tremendous amount of success and we have a very strong interest level from people in negotiating with us for the final pieces.”
Bouchard said Braidy is going to be able to raise the remaining capital.
“The majority of our capital raise — both debt and equity — is now in hand in cash, binding commitments or letters of intent,” Bouchard said.
“We are right smack dab on our expected timeline to open the mill in 2021,” he said, adding “We are recruiting strategic partners to come in and help us for the next 20 to 50 years to rebuild Eastern Kentucky.”
Braidy is scheduled to construct a massive aluminum rolling mill at EastPark Industrial Center. The mill will be the first greenfield aluminum rolling mill built in the U.S. in 37 years.
The project has received $15 million in taxpayer seed money. The mill is considered a major component in ongoing efforts to rebuild the eastern Kentucky economy in the aftermath of major losses of jobs in the coal and steel sectors throughout the region.
Bouchard and Braidy have said previously $200 million raised so far is from a partnership with En+ Group subsidiary United Company RUSAL. Rusal is a Russian-based entity expected to supply 200,000 tons of certified low-carbon prime aluminum ingot and slabs each year for a 10-year period, allowing Braidy to target 20% lower carbon emissions than its nearest competitor.
Bouchard reiterated Tuesday that the partnership with Rusal will make the Atlas mill unique in its low carbon footprint. The deal with Rusal has been finalized, representing 12 percent of the total capital invested in the mill. Rusal uses hydropower instead of coal or gas to make their prime aluminum.