Pick Your Community: | Hopkins | Muhlenberg | Daviess | Christian | Henderson | Lakes | McCracken | Webster
Davis Motor Sales banner ad
Impressions pre-reset: 420826 Clicks pre-reset: 872

Century Aluminum to Buy Alcan’s Sebree Smelter Rate Increase Still Expected

century aluminum 300WEBSTER COUNTY, Ky. (5/3/13) - After nearly three months of debates, which went from the board room to the state capital, the nearly 2,000 employees of three western Kentucky companies can breathe a little easier after the announcement that Century Aluminum plans to purchase Rio Tinto Alcan’s Sebree Works Smelter.

The first quarter of 2013 has been tense, as Kenergy Customers and employees of Big Rivers, Rio Tinto Alcan’s Sebree Smelter and Century Aluminum’s Hawesville Smelter waited to see what would come of the battle being fought over utility rates.

Rio Tinto Alcan’s Sebree Works Aluminum Smelter gave notice to Big Rivers Electric and Kenergy on Friday February 1, 2013 that they would be ending their power contract in 12 months, following the lead of Century Aluminum of Hawesville who filed similar paperwork in August. The notice from Alcan came as Big Rivers Electric Corp. was seeking a rate increase citing the impending loss of Century.

Rio Tinto, a UK based mining and processing company, says that after a review of their 2011 aluminum assets, it was concluded that the Sebree Smelter no longer fit with their long-term strategy. The rate increase caused by the expected loss of Century likely sped up the announcement.

The two aluminum smelters are the biggest customers of Kenergy, who in turn purchases their power from Big Rivers. The smelters provide as much as 70% of Kenergy’s annual income.

In a joint press release from Big Rivers, Kenergy and Century, it was announced Monday morning that Alcan had signed an Asset Sale Agreement with Montery, California based Century Aluminum. Century will pay $61 million dollars for the Sebree based facility, and assume ownership of an addition $4 million dollars in liabilities.

Sebree Works produced 205,000 tonnes of primary aluminum in 2012. The facility is estimated to support 1,800 jobs both directly and indirectly in the region, and contributes about $200 million a year to Kentucky through taxes, salaries and procurements.

With the purchase of the Sebree Works Smelter, Century Aluminum seems to be making a statement that they are planning on remaining in Western Kentucky.

“After months of negotiations, both parties have come to a framework for an agreement that will allow Century Aluminum to access market power,” said Marty Littrel, Director of Communications and Community Relations for Big Rivers Electric Corporation. “There is still a lot of work and specifics to be accomplished over the coming weeks as many approvals from various parties will be required.”

Once the agreement is in place, it still does not negate the need for an increase in wholesale electric rates.

“This arrangement is intended to have no impact to Big Rivers’ current rate proposal,” said Littrel. “All along, our main objective has been to help Century remain open but make sure our customers would not experience an even higher rate increase if Century remained open and bought power from the market.”

Matt Hughes
J-E News Editor

© Copyright 2014 SurfKY News Group, Inc. All rights reserved. This material may not be published, broadcast, or rewritten without permission. SurfKY News encourages you to share this story by using one of the social media links below.

Posted on 2/2/14
3/13 - 16
2/6/2014 - posted
3/13 - 16
Started 11/8/2013
Started 11/8/2013
button coupons
2/6/2014 - posted
3/13 - 16
Started 11/8/2013
Started 11/8/2013
2/6/2014 - posted
3/13 - 16
Started 11/8/2013
Started 11/8/2013
button classifieds
2/6/2014 - posted
3/13 - 16
Started 11/8/2013
Started 11/8/2013

Most Read This Week

November 22, 2014 5308

One Injured in Two Vehicle Collision in Greenville

in Local (Muhlenberg) Top News by Miria Thomas
November 24, 2014 3464

Two Charged for Possession of Meth After…

in Local (Muhlenberg) Top News by MCSO/PIO Alex Piper
November 21, 2014 3392

Kentucky Employers to Save About $112 million

in General News For All Sites by Cathy Lindsey
November 25, 2014 2744

Call for Help Results in Arrest for Possession of…

in Local (Hopkins) Top News by Madisonville Police Department
November 25, 2014 2731

Madisonville Man Charged for Selling Cocaine

in Local (Hopkins) Top News by Madisonville Police Department
November 22, 2014 2535

Greenville Representatives Taking Part in Austin,…

in Local (Muhlenberg) Top News by Paul McRee, SurfKY News
November 24, 2014 2444

Madisonville Police Charge Woman with Terroristic…

in Local (Hopkins) Top News by Madisonville Police Department
November 22, 2014 2336

SAR Planning 'Triple' Revolutionary War Patriot…

in Local (Muhlenberg) Top News by Geoff Baggett
November 24, 2014 2335

Hopkins County Sheriff's Reports Released

in Hopkins News by Sheila Hopper
November 21, 2014 2334

KSP Announces 'Cram the Cruiser' to Feed the…

in Top News For All Sites Touching Hopkins by Stu Recke

Stories Trending Today

November 26, 2014 1563

Greene Leaf Boutique Offers Style for Less

in Local (Muhlenberg) Top News by Charles W. Riley II, SurfKY News
November 26, 2014 1306

Madisonville Man Charged with Selling Cocaine

in Local (Hopkins) Top News by Lt. William W. Poe
November 27, 2014 1101

Sons of American Revolution Hold Triple Grave…

in Local (Muhlenberg) Top News by Geoff Baggett
November 26, 2014 1078

Don't Let Your Thanksgiving Go Up in Smoke

in General News For All Sites by Kip Diggs
November 27, 2014 1012

MCTI Presents 'The Santaland Diaries'

in Local (Muhlenberg) Top News by Paul McRee, SurfKY News
November 26, 2014 982

Thanksgiving is Top Day for Cooking Fires

in Top News For All Sites by Ricki Gardenhire
November 27, 2014 920

MSA Thanksgiving Food Box Drive

in Top News For All Sites Touching Hopkins by Joyce Riggs
November 27, 2014 913

Caretender's Staff Care About Feeding Needy…

in Top News For All Sites Touching Hopkins by Amber Averitt, SurfKY News
November 26, 2014 856

Gift Exchange Dos and Don'ts

in General News For All Sites by SurfKY News
November 26, 2014 670

Henderson County Middle and High School Students…

in Local (Henderson) Top News by HCS Publication Team

SurfKY News Group, Inc.
Corporate Office & Studio
1125 Nebo Rd.  •  Madisonville, KY 42431
270.452.2727 (phone)
  •  270.452.2249 (fax)


Contact a member of our staff: www.surfky.com/contact
Copyright © 2014 SurfKY News Group, Inc.  •  Terms of Use  •  Site Map

social fbsocial twsocial yt
social gpsocial flrsocial rss