Century Aluminum Company - Company Announcement (is)

- Century Aluminum Reaches Agreement on Long-Term Power Contract for Hawesville, KY Smelter

MONTEREY, CA--(Marketwire - June 17, 2009) - Century Aluminum of Kentucky, a
wholly owned subsidiary of Century Aluminum Company (NASDAQ: CENX), today
announced that it has reached agreement on a new, long-term power contract for
the company's Hawesville, Kentucky smelter. The agreement was reached after
lengthy discussions with E.ON U.S. and Big Rivers Electric Corporation (Big
Rivers). 

Century, along with E.ON U.S., Big Rivers and Rio Tinto Alcan, has been working
for more than five years to negotiate an "unwind" of the existing contractual
arrangement between Big Rivers and E.ON U.S., and to define a new agreement
that would provide long-term, cost-based power to the two smelters in western
Kentucky. On May 29, Century announced that it was unable to move forward on
the unwind agreement due to unfavorable business conditions that had the
potential to create unacceptable near-term financial risk. 

E.ON has agreed to help Century mitigate a significant portion of this risk
during the near-term. For a limited period, to the extent Century does not use
all the power under the take-or-pay contract, E.ON will, with some limitations,
assume Century's obligations. As part of this arrangement, E.ON will defer the
payment of approximately $40 million which it had previously agreed to pay to
Century upfront and defer funding of an escrow account of approximately $40
million that would have been used to reduce Century's power costs during the
next several years. E.ON will now pay these amounts as and if Century consumes
power under the contract. At Hawesville's current production rate, Century
would receive the entirety of these economic benefits over approximately
eighteen months. To the extent the aggregate risk mitigation and production
payments made by E.ON exceed approximately $80 million, Century would repay
this excess to E.ON over time, but only if the LME aluminum price were to
exceed certain thresholds. "We are delighted to be able to participate in the unwind agreement," said
Hawesville vice president and plant manager Matt Powell. "All of the parties
have worked tirelessly to achieve a mutually beneficial outcome. Although we
still face significant issues in the near-term as a result of depressed
aluminum prices, the unwind agreement is a major step forward for the long-term
viability of the smelters and for the economic health of the local communities
here in western Kentucky."

At full capacity, the Hawesville smelter produces approximately 244,000 tonnes
of primary aluminum annually from five potlines. As a result of the global
economic crisis and depressed aluminum prices, Century curtailed one potline in
March 2009. The Hawesville smelter currently receives its electrical power from
Kenergy Corp (a member of the Big Rivers system), under a power supply
agreement between WKE and Kenergy that expires at the end of 2010. 

Century Aluminum Company, the parent of Century Aluminum of Kentucky, owns
primary aluminum capacity in the United States and Iceland, as well as an
interest in alumina and bauxite assets in the United States and Jamaica.
Century's corporate offices are located in Monterey, California. 


Cautionary Statement 

This press release may contain "forward-looking statements" within the meaning
of U.S. federal securities laws. The company has based its forward-looking
statements on current expectations and projections about the future; however,
these statements are subject to risks, uncertainties and assumptions, any of
which could cause the company's actual results to differ materially from those
expressed in its forward-looking statements. More information about these
risks, uncertainties and assumptions can be found in the risk factors and
forward-looking statements cautionary language contained in the company's
Annual Report on Form 10-K and in other filings made with the Securities and
Exchange Commission. The company does not undertake, and specifically
disclaims, any obligation to revise any forward-looking statements to reflect
the occurrence of anticipated or unanticipated events or circumstances after
the date such forward-looking statements are made. 

Certified Advisors for the First North market of the OMX Nordic Exchange
Iceland hf. for Global Depositary Receipts in Iceland: 

Helga Gunnarsdottir, Director-Corporate Finance, NBI hf. 

Astros Vidarsdottir, Senior Manager-Corporate Finance, NBI hf. 


Contacts:

Mike Dildine (media)
831-642-9364

Shelly Lair (investors)
831-642-9357