With state assistance totaling $9 million in hand, Noranda Aluminum Holding Corp. is resuming a $38 million expansion project at its aluminum smelter in New Madrid, Mo.

Noranda said today it expects the project to put more than $20 million into the local economy during construction and increase the smelter's annual metal production by 35 million pounds by 2013.

Gov. Jay Nixon said Noranda’s expansion in southeastern Missouri is good for the region. Layle K. "Kip" Smith, Noranda’s president and CEO, said the company appreciates the state's support.

Noranda began the New Madrid expansion in 2008. Declining market conditions last year led to suspension of the project. The state's announcement today of $1 million in additional assistance--totaling $9 million--marked the re-launch of the smelter's expansion.

The company said its New Madrid plant has an annual production capacity of approximately 580 million pounds, representing more than 15 percent of total U.S. primary aluminum production in 2009.