Century Aluminum's $4B Oklahoma Smelter Project Stalled by Local Opposition

A proposed $4 billion aluminum smelter in Oklahoma, a joint venture between Century Aluminum (CENX) and Emirates Global Aluminium, has encountered a significant local roadblock just weeks after clearing a major political hurdle. The city council of Inola, the project's proposed site, voted to extend a moratorium on smelter permits until April 2027 and schedule a public referendum on the facility, casting doubt on the project's timeline.

Political and Legal Battles

The project's developers gained a political victory in late August when Mike Mazzei, a supporter of the smelter, won the Republican nomination for governor in a tight runoff election. The project had become a central issue in the race, with state Attorney General Gentner Drummond actively opposing it over environmental concerns.

Drummond filed a lawsuit in June to block the smelter, which remains active in state court. The U.S. Justice Department has commented in support of the project, citing aluminum's importance to national security and military readiness. However, a federal judge recently ruled that the lawsuit should remain in state court, denying a request from the companies to move it to a federal venue.

Local Opposition Mounts

Despite support at the state and federal levels, local opposition has solidified. The Inola City Council, which initially supported the smelter, unanimously voted on September 14 to extend a permit moratorium through April 7, 2027. On that date, a referendum will be held for residents to vote on whether the smelter should be built.

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Oklahoma's term-limited Governor, Kevin Stitt, has suggested that the industrial park where the smelter would be located could be moved outside of Inola's city limits if opposition continues. According to Reuters, such a move would remove the project from the council's jurisdiction, though it is unclear how this could be achieved under current state law.

Project Significance and Company Response

If constructed, the facility would be a landmark project for the U.S. metals industry:

• It would be the first new aluminum smelter built in the United States since 1980.
• With a planned output of 750,000 metric tons per year, it would be the largest source of primary aluminum in the Western Hemisphere.
• The project aims to reduce U.S. reliance on foreign metals, as the country currently imports roughly 60% of the primary aluminum it consumes.

In a joint statement, Emirates Global Aluminium and Chicago-based Century Aluminum expressed disappointment with the moratorium extension, calling a referendum premature while the court case is ongoing. The companies recently filed a regulatory notice stating they plan to reduce proposed fluoride emissions by 37% and will release an economic impact study in the coming weeks.