Kaiser Aluminum to Operate Three Potlines At Valco Smelter in 1999

Business Wire, Dec 15, 1998

HOUSTON--(BUSINESS WIRE)--Dec. 15, 1998--Kaiser Aluminum & Chemical Corporation, the operating subsidiary of Kaiser Aluminum Corporation (NYSE:KLU), said that its 90%-owned Volta Aluminium Company Limited (Valco) smelter in Ghana will operate three of its five potlines in 1999. The decision to operate at that level is based on the power allocation that Valco has received from the Volta River Authority (VRA) as well as consideration of market and other factors.

Valco has begun preparing for the restart and expects to have three lines operating by February 1999. Three potlines represent annual production of approximately 120,000 metric tonnes. The positive impact of the line restarts will, in the short term, be more than offset by the impact of costs associated with restarting those lines.

Valco's five potlines have an annual rated production capacity of approximately 200,000 metric tonnes. Due to energy-related curtailments earlier this year, Valco has been operating only one of its five potlines, representing approximately 40,000 metric tonnes of production.

Kaiser is currently operating approximately 58 percent of its primary aluminum annual rated capacity of 508,000 metric tonnes. With the restart of the Valco potlines, that operating rate will increase to approximately 72 percent.

Separately, Kaiser continues its preparations for an eventual restart of three potlines (representing approximately 73,000 metric tonnes of annual capacity) at its two smelters in Washington. After the preparations are complete, Kaiser will then review market conditions before making the decision to restart.

Kaiser Aluminum is a leading producer of alumina, primary aluminum, and fabricated aluminum products, and is a major supplier of alumina and primary aluminum in the domestic and international markets. MAXXAM Inc. (ASE:MXM) directly and indirectly holds approximately 63 percent of Kaiser.