Century receives permission from Kentucky Public Service Commission for market-priced power for Sebree smelter

Century Aluminum Sebree LLC, a wholly owned subsidiary of Century Aluminum Company, announced today that the Kentucky Public Service Commission has approved agreements among Century Aluminum, Big Rivers Electric Corporation and Kenergy Corp. that will allow Century to purchase market-priced power for the Sebree aluminum smelter beginning February 1, 2014. This agreement will allow for continued operation of the Sebree smelter following the expiration of the current power contract on January 31, 2014.

"A market power arrangement is a critical enabler for this plant to continue operating and we believe this agreement will allow Sebree to be viable in the world market over the long-term," commented Michael Bless, President and Chief Executive Officer. "On behalf of Century's Board of Directors, I want to thank everyone involved in this process, including Sebree management, USW leadership and our employees. In addition, we appreciate the Public Service Commission's timely consideration and approval of the agreement."

While the decision is positive for Sebree, the KPSC decided not to require Big Rivers to perform maintenance work on energized transmission lines as Century requested. Such "hot-line" work can reduce and/or eliminate potential power curtailment events. Without hot line work, both the Hawesville and Sebree smelters are at risk of losing power to the plants that would require one or more potlines to be closed, resulting in hundreds of employees being laid off.

"The hot line issue is a crucial element for our smelters, one that requires an immediate solution," added Mr. Bless. "Century is exploring all options regarding hot line work to protect all 1,200 jobs at the two smelters."

As a result of the ruling, Century is rescinding the WARN notice issued by Sebree in November 2013. Known as the Worker Adjustment and Retraining Notification Act, the notice was distributed to all employees and elected officials alerting them that the plant would curtail operations if the KPSC decision was unfavorable.

The Sebree smelter, located in southern Henderson County, KY, has an annualized hot metal production capacity of 205,000 metric tons of primary aluminum and employs approximately 520 men and women. It began operations in 1973.

Century Aluminum Company owns primary aluminum capacity in the United States and Iceland. Century's corporate offices are located in Chicago, Illinois.