Kaiser Aluminum Smelter in Ghana in Agreement to Receive Compensation for Additional Potline It Will Curtail
HOUSTON--(BUSINESS WIRE)--April 6, 1998--Kaiser Aluminum Corporation (NYSE:KLU) today announced that its 90 percent-owned Volta Aluminium Company Limited (Valco) smelter in Ghana has reached an agreement with the Volta River Authority (VRA) to receive compensation in lieu of the power necessary to run an additional potline that Valco said it will curtail beginning today. The compensation is expected to partially mitigate the financial impact of the curtailment.
As a result of the curtailment, Valco will be operating one of its five potlines, as compared to 1997, when Valco operated four potlines. Valco previously curtailed two of its potlines in 1998 -- one in January, for which it has not received compensation, and one in February, for which it was compensated.
As previously announced, the company has notified the VRA that it believes it had the contractual rights at the beginning of 1998 to sufficient energy to run four and one-half potlines for 1998. Valco continues to seek compensation from the VRA with respect to the January 1998 reduction of its power allocation. Valco and the VRA also are in continuing discussions concerning other matters, including steps that might be taken to reduce the likelihood of power curtailments beyond 1998. No assurances can be given as to the success of these discussions, the possibility of requests from the VRA for additional curtailments, or as to the operating level of Valco for the remainder of 1998 or beyond. |
