MONTEREY, CA, Jun 01, 2006 (MARKET WIRE via COMTEX News Network) -- Century Aluminum Company (NASDAQ: CENX) announced today that Nordural ehf., a wholly owned subsidiary, has signed a memorandum of understanding to purchase electrical energy for its primary aluminum reduction project in Helguvik, Iceland. The agreement was reached with the two major Icelandic geothermal power producers, Hitaveita Sudurnesja and Orkuveita Reykjavikur.
Under the agreement, power will be supplied to the new Helguvik plant in stages, beginning with an initial phase of up to 250 MW, which will support production capacity of up to 150,000 metric tonnes per year (mtpy). Hitaveita Sudurnesja will provide up to 150 MW in this initial stage, and Orkuveita Reykjavikur will supply up to 100 MW. Electricity delivery for this first phase is targeted for 2010. The MOU provides for a total of 435 MW, which will ultimately provide power for a 250,000 mtpy facility. The agreement is subject to the satisfaction of certain conditions.
"This agreement is a major step forward for our development plans at Helguvik," said Century chief executive officer Logan W. Kruger. "We continue to be very pleased with the business environment in Iceland and the strong support we have received from the local community, government officials and Hitaveita Sudurnesja and Orkuveita Reykjavikur. At Helguvik, we will continue our policy of developing our reduction plants in well-defined stages to ensure that our projects proceed in harmony with the best interests of the people and the economy of Iceland."
Century Aluminum Company owns and operates a 244,000 mtpy primary aluminum reduction plant at Hawesville, Kentucky; a 170,000 mtpy plant at Ravenswood, West Virginia; and a plant at Grundartangi, Iceland that is in the process of being expanded from 90,000 mtpy to 220,000 mtpy by the fourth quarter of 2006. The company also owns a 49.67-percent interest in a 222,000 mtpy reduction plant at Mt. Holly, South Carolina. Century also holds a 50-percent share of the 1.25 million mtpy Gramercy Alumina refinery in Gramercy, Louisiana and related bauxite assets in Jamaica. Century's corporate offices are located in Monterey, California.
This press release may contain "forward-looking statements" within the meaning of U.S. federal securities laws. The company has based its forward-looking statements on current expectations and projections about the future; however, these statements are subject to risks, uncertainties and assumptions, any of which could cause the company's actual results to differ materially from those expressed in its forward-looking statements. More information about these risks, uncertainties and assumptions can be found in the risk factors and forward-looking statements cautionary language contained in the company's Annual Report on Form 10-K and in other filings made with the Securities and Exchange Commission. The company does not undertake, and specifically disclaims, any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date such forward-looking statements are made.
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SOURCE: Century Aluminum Company
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