Century Aluminum enters into a new, three-year preliminary power contract with Santee Cooper for its Mt. Holly Smelter

On Monday, December 7, Century Aluminum of South Carolina (CASC), a wholly-owned subsidiary of Century Aluminum Company, announced that it entered a preliminary agreement with Santee Cooper (South Carolina Public Service Authority) for a new, three-year power contract for Mt. Holly smelter. According to the contract, Santee Cooper is expected to provide a minimum 290MW of electric power to allow the smelter to increase its current production by 50 per cent. Century Aluminum is reportedly planning to add one-half of one potline to its current operation to bring up the total production to 75 per cent of Mt. Holly’s full capacity.

Both Century Aluminum and Santee Cooper have agreed to extend the current contract by three months, which was previously set to expire on December 31, 2020, until they finalise the new contract and obtain necessary governmental approvals. The new contract is expected to come into effect from April 1, 2021, after receiving necessary approvals and run through December 2023.

Michael Bless, Century’s President and Chief Executive Officer, said, “We could not have reached this milestone without the unwavering commitment of Mt. Holly’s employees, their families and the entire community. In the face of the persistent uncertainty surrounding the plant’s future, compounded by an unprecedented global health crisis, our people have consistently operated the plant safely and efficiently. It is only through their focus and hard work that we were provided the opportunity to seek a power arrangement that would enable the plant to continue to operate. The men and women of Mt. Holly have earned our gratitude and our highest respect. We look forward to beginning the significant efforts required to rebuild the cells and otherwise prepare the plant to operate for the longer-term; this will include ultimately hiring an additional 70 people to support the incremental one-half potline.”

Jesse Gary, Century’s Executive Vice President and Chief Operating Officer, stated, “We would also like to thank our colleagues at Santee Cooper for their dedication to addressing a set of complex issues of mutual importance. It is evident they are committed to working with us, within the required regulatory boundaries, to support the critical value Mt. Holly provides to the community and to the state more broadly. We look forward to working with them over the coming years to discuss opportunities to return the plant to full production. We would also like to recognize state leadership, especially Governor McMaster and Commerce Secretary Hitt, without whose dedication we could not have reached this point; they have demonstrated again why manufacturers like Century are attracted to South Carolina.”