Century Aluminum Advances Pre-Engineering for 750,000-Ton Primary Aluminum Smelter

en.Wedoany.com Reported - On November 5, Century Aluminum disclosed during its third-quarter earnings conference call that the planned 750,000-ton-per-year primary aluminum smelter project in Inola, Oklahoma, is advancing financing, power supply agreements, and detailed engineering design work. The company is developing the project jointly with Emirates Global Aluminium (EGA). The key terms of the financing plan have been largely agreed upon, the long-term power supply agreement is entering the final documentation stage, and engineering design work will continue in the fourth quarter, creating conditions for a final investment decision (FID) on the project.

Century Aluminum CEO Jesse Gary stated that the company has reached agreement with potential financiers on most key financing terms and expects the financing arrangements to be finalized when the final investment decision is made. The project plans to purchase electricity directly from the local utility, and the two parties are advancing the final documentation of the long-term power supply agreement. The company will also continue to refine the detailed design plan with engineering contractor Bechtel and Emirates Global Aluminium to determine project construction and implementation arrangements.

New progress has been made in the project's environmental permitting work. In September, Century Aluminum submitted a revised environmental plan to the Oklahoma Department of Environmental Quality, committing to a 37% reduction in permitted fluoride emissions for the project. The company is engaging with state regulators and local communities, responding to project-related questions through community meetings and direct communication.

Century Aluminum also released a new economic impact study estimating that once the smelter is completed, it will generate approximately $1.5 billion in annual economic output for Oklahoma, equivalent to nearly 1% of the state's total economy. The company has also partnered with Tulsa Innovation Labs on workforce training to build a talent pipeline for project construction and future operations. Under current plans, the smelter will create more than 1,000 permanent direct jobs, as well as approximately 5,000 indirect and induced jobs.

The smelter is being developed jointly by Emirates Global Aluminium and Century Aluminum, with the two parties agreeing in a joint development agreement signed in January to hold 60% and 40% interests, respectively. Bechtel was awarded the pre-engineering design task in February, responsible for plant layout, modular construction plans, infrastructure requirements, and transportation and logistics planning. Century Aluminum stated that the company will prioritize reserving the necessary capital for the project and will evaluate other capital expenditure and shareholder return arrangements after completing the final investment decision.