MONTEREY, CA, Jul 16, 2009 (MARKETWIRE via COMTEX News Network) -- Century Aluminum of Kentucky, a wholly owned subsidiary of Century Aluminum Company (NASDAQ: CENX), today announced the completion of a new, long-term power contract for the company's Hawesville, Kentucky smelter.
Previously, the Hawesville smelter received its electrical power from Kenergy Corp (a member of the Big Rivers system), under a power supply agreement between WKE and Kenergy that was to expire at the end of 2010. Century, E.ON U.S., Big Rivers and Rio Tinto Alcan have been working for more than five years to negotiate an "unwind" of the existing contractual arrangement between Big Rivers and E.ON U.S., which would provide long-term, cost-based power to Century's Hawesville smelter and Rio Tinto Alcan's Sebree smelter in western Kentucky. On June 17, 2009, Century announced that the parties had reached agreement on the provisions of a new contract which would secure the energy needs of both smelters through 2023.
"Today's completion of the unwind agreement is a credit to the dedicated efforts of many people over an extended period of time," said Hawesville vice president and plant manager Matt Powell. "While we still face significant near-term market challenges, the new energy agreement is essential to the future of the smelter and to the economic well-being of our local communities."
At full capacity, the Hawesville smelter produces approximately 244,000 tonnes of primary aluminum annually from five potlines. As a result of the global economic crisis and depressed aluminum prices, Century curtailed one potline in March 2009.
Century Aluminum Company, the parent of Century Aluminum of Kentucky, owns primary aluminum capacity in the United States and Iceland, as well as an interest in alumina and bauxite assets in the United States and 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.
Certified Advisors for the First North market of the OMX Nordic Exchange Iceland hf. for Global Depositary Receipts in Iceland:
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Astros Vidarsdottir, Senior Manager-Corporate Finance, NBI hf.
Contacts: Mike Dildine (media) 831-642-9364 Shelly Lair (investors) 831-642-9357
SOURCE: Century Aluminum Company
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