Oklahoma aluminium smelter project faces Inola referendum and the $4b facility could change location

The USD 4 billion Oklahoma aluminium smelter project planned by Emirates Global Aluminium (EGA) and Century Aluminum is facing a new hurdle in Inola, where the city council has extended a moratorium on smelter permits and called a referendum on the proposed facility.

The 750,000-tonne-per-year aluminium smelter, announced in January, is expected to more than double current US primary aluminium production and would be the first new primary aluminium smelter in the country in almost 50 years. It would also become the largest source of primary aluminium in the Western Hemisphere.

The project has taken on added importance as the US imports roughly 60 per cent of the primary aluminium it uses. Aluminium is essential to transportation, defence, aerospace and electrical infrastructure, making the proposed Oklahoma facility part of a broader push to expand domestic supply.

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Inola extends aluminium smelter permit moratorium

The latest development came on September 14, when the Inola City Council unanimously voted to extend its moratorium on aluminium smelter permits through April 2027. The council also decided to hold a referendum on whether the Oklahoma aluminium smelter should be built.

The moratorium was introduced in June and had been due to expire on September 28. The decision marks a change in the position of Inola officials, who had supported the project for years before turning against it earlier this year.

The city has jurisdiction because the proposed Century Aluminum-EGA smelter is planned for the Port of Inola industrial park. The Tulsa-Rogers County Port Authority acquired more than 2,000 acres (809 hectares) for the site in 2019.

State Attorney General Gentner Drummond, opposed the project over environmental concerns and filed a lawsuit in June seeking to block its construction.

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Century Aluminum and EGA face ongoing legal challenge

Alongside the local opposition, the Century Aluminum and EGA aluminium smelter project is also facing a legal challenge from Drummond.

EGA and Century Aluminum sought to move the lawsuit to federal court, citing the importance of aluminium to US national security. The US Justice Department backed the project and opposed the lawsuit, saying it was committed to supporting military readiness and opposing litigation that subverts environmental regulatory processes established by Congress.

A federal judge earlier this month granted Drummond's request to keep the lawsuit in state court, where the case is continuing.

The legal dispute now runs alongside the local referendum, leaving the developers to address both challenges as they pursue the Oklahoma smelter project.

EGA and Century Aluminum plan lower fluoride emissions

EGA and Century Aluminum have criticised the extension of the moratorium and said they believe putting the Oklahoma aluminium smelter to a referendum is premature while the court case is still ongoing.

The companies said moving forward with a vote before the appeals process could undermine due process and expose Inola taxpayers to significant financial and legal risks.

At the same time, the developers said in a regulatory filing this month that they plan to reduce fluoride emissions from the proposed aluminium smelter by 37 per cent. They also plan to release an economic impact study within weeks.

"Community trust, transparency and responsible development remain central to our approach," said Ziad Fares, a developer on the project's engineering team.

Oklahoma aluminium smelter could face change in location

The dispute has also raised the possibility of moving the industrial park outside Inola's city limits.

Term-limited Oklahoma Governor Kevin Stitt said the industrial park could be moved outside the city if the Inola council continues to oppose the Century Aluminum-EGA smelter. Such a move would remove the project from the council's jurisdiction.

"The port authority has chosen to be in the city limits, and they can choose to leave," Stitt told Reuters.

However, it is not immediately clear how the move could be achieved because state law requires local approval for such a change. Inola city officials did not respond to requests for comment.

For the USD 4 billion Oklahoma aluminium smelter, the next phase will therefore depend on the continuing court case, the planned referendum and the developers' efforts to address local concerns.

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