Century Aluminum sees Ravenswood plant reopening

 Century Aluminum executives said Tuesday that restarting the company's idled Ravenswood smelter "most likely makes sense."

Company executives added that they're "optimistic" about negotiating discounted electricity rates and a new contract with union workers -- two factors Century says are critical to reopening the plant.

"We are working diligently on both those issues, and we'd expect to bring them to conclusion," said Century Chief Operating Officer Wayne Hale during the company's third-quarter earnings conference call.

Hale and Century CEO Logan Kruger declined to discuss a timeline for reopening the Ravenswood factory. They would only say that discussions with United Steelworkers Local 5668 and Appalachian Power are continuing.

"We're working on two major pieces," Kruger said. "Both of them require a lot of negotiation and agreement. Once we get close to a sense we can achieve those two objectives, then we can put some timing around it."

Century shuttered the 170,000-ton-a-year aluminum smelter in February 2009, putting 651 employees out of work. A skeleton crew of about a dozen employees continues to maintain the idled smelter.

"We are devoting substantial effort to create the conditions in which we could restart," Hale said. "In the present market conditions, a restart would most likely make sense."

Asked how close the company was to reaching agreements with the power company and the union, Hale said only, "I think we can be optimistic we'll get these both concluded."

Hale said Century has held "continuous meetings" with union leaders in recent months, but he declined to discuss any specifics of the negotiations. The steelworkers contract expired Aug. 31.

Last month, union leaders said Century wanted "extensive concessions" before reopening the plant.

Eli Morris, the union's grievance chairman, said Century wanted to slash the plant's work force by 135. The company also wants no restrictions on forcing employees to work on their days off, Morris said.

Morris and Local 5668 President Jason Miller could not be reached for comment late Tuesday.

Kruger said aluminum market conditions have improved from earlier this year. Aluminum prices were at $2,360 per metric ton Tuesday.

Prices bottomed out at $1,300 a ton in late 2008, shortly before the plant closed.

Hale said Tuesday that Century is trying to secure a long-term power agreement with Appalachian Power under a law spearheaded by Gov. Joe Manchin earlier this year.

The law allows industrial manufacturers, such as Century, to negotiate flexible power rates. The rates are tied, in part, to market prices for the products the plants manufactures. During tough economic times, the plants pay a lower rate.

Century's monthly electric bill topped $9 million when the Ravenswood smelter was operating.

Century officials have said it would take months to reopen the plant, if a decision is made to do so. Restarting the smelter would cost more than $20 million.