A large smelter project in Inola, Oklahoma, that is expected to double U.S. primary aluminum production is “moving forward on all fronts” in preparation for construction, Century Aluminum CEO Jesse Gary said in a third quarter earnings call Thursday afternoon.
The company and its partner Emirates Global Aluminum have targeted construction to start by the end of 2026. But local community and legal challenges have delayed development.
“We’re trying to address and answer questions as they come up, and keep the project on track and moving forward,” Gary said. He added that financial discussions, power contract negotiations and engineering plans are advancing.
Gary provided no updated project timeline on the call, but said he aims to offer details on Century Aluminum’s 2027 plan in February.
The $4 billion project has received federal and state support for bringing high-purity aluminum production back to the United States. It would also create thousands of direct and indirect jobs and increase the state’s total gross domestic product by $1.5 billion, according to company estimates.
However, local officials and community members have moved to block the project, citing health and environmental concerns.
In September, Inola Town Council placed a moratorium on heavy industrial construction through April 7, 2027, and plans to have a referendum on the spring ballot so voters can decide whether to ban aluminum smelting in the town.
Shortly thereafter, the city of Tulsa-Rogers County Port Authority voted unanimously to sue Inola for interfering with industrial development at the Tulsa Port, NPR-affiliate KOSU reported. More recently, the Cherokee Nation approved a resolution formally opposing the smelter, which will be sent for a full tribal council vote.
Century Aluminum has tried to address regulatory issues and community member concerns. In September, the company submitted an updated environmental plan to the Oklahoma Department of Environmental Quality with a commitment to reduce its permitted fluoride emissions by 37%. It has also begun working with Tulsa Innovation Labs on workforce development for the smelter project, Gary said.
“When complete, it will be amongst the most efficient and advanced smelters in the world and a crown jewel of the U.S. industrial base,” he said.
Midterm election impacts
Moving forward, Century Aluminum does not anticipate the midterm election results to have an adverse impact on the Inola smelter project.
Gary said reindustrialization of U.S. manufacturing has been “one of the few bipartisan issues out there,” with the company receiving support from Republicans and Democrats under the current administration. He also expressed enthusiasm for Mike Mazzei, the governor-elect of Oklahoma.
“We expect, no matter what happens, to continue to have that sort of broad-based support across the aisle,” Gary said.
Q3 results and outlook
Century Aluminum’s earnings improved sequentially during the third quarter, driven by higher shipments and a return to full production across facilities.
Aluminum shipments totaled 173,483 metric tons, compared to 130,632 metric tons in the previous quarter. The company attributed higher Q3 sales and net income to the restart of a production line at its Grundartangi, Iceland, facility and favorable metals prices.
Century Aluminum saw a “return to full capacity across our assets for the first time in over a decade,” which generated quarterly sales of nearly $1 billion, Gary said.
This offset some instability at the company’s Mt. Holly, South Carolina, operations following a restart in July. Gary said that Mt. Holly should return to normal volume and production mix throughout Q4.
Looking ahead, the company is expecting Q4 adjusted earnings before interest, taxes, depreciation and amortization to range between $275 million and $300 million.
