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Curtailment of operations Ravenswood and Hawesville | 12 Months Ended
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Dec. 31, 2011
Curtailment of operations - Ravenswood and Hawesville [Abstract] |
Curtailment of operations - Ravenswood and Hawesville |
3. | Curtailment of operations – Ravenswood and Hawesville
In February 2009, Century Aluminum of West Virginia, Inc. fully curtailed its plant operations at Ravenswood. Layoffs for the majority of Ravenswood's employees were completed in February 2009. The decision to curtail operations was due to the relatively high operating cost at Ravenswood and the depressed global price for primary aluminum. In March 2009, CAKY curtailed one of its five potlines at Hawesville. The action reduced primary aluminum production by approximately 49,000 metric tons per year. We restarted the curtailed potline at Hawesville in 2011. As of December 31, 2011, Hawesville was essentially at full production capacity. We incurred curtailment charges (benefits) of $(3,806), $(37,386) and $41,710 during the years ended December 31, 2011, 2010 and 2009, respectively, which are reported in other operating income - net in the Consolidated Statements of Operations. The majority of the curtailment charges are related to Ravenswood. The components of the curtailment costs are as follows:
|  | December 31, |
|  | 2011 |  |  | 2010 |  |  | 2009 |
Ongoing site costs |  | $ | 12,313 |  |  | $ | 14,332 |  |  | $ | 18,233 |
Severance/employee-related cost |  |  | 1,038 |  |  |  | 455 |  |  |  | 22,049 |
OPEB plan curtailment adjustment |  |  | (18,304 | ) |  |  | (56,728 | ) |  |  | (14,830 | )
Pension plan curtailment adjustment |  |  | 1,147 |  |  |  | 4,555 |  |  |  | 2,478 |
Alumina contract – amendments and spot sales net losses |  |  | - |  |  |  | - |  |  |  | 7,448 |
Power/other contract termination costs |  |  | - |  |  |  | - |  |  |  | 6,332 |
Total curtailment expense (benefit) |  | $ | (3,806 | ) |  | $ | (37,386 | ) |  | $ | 41,710 |
Cash curtailment expenditures
|  | December 31, |
|  | 2011 |  |  | 2010 |  |  | 2009 |
Curtailment of operations at Ravenswood and Hawesville |  | $ | 13,502 |  |  | $ | 10,078 |  |  | $ | 22,300 |
Ongoing idling costs at Ravenswood |  |  | 9,464 |  |  |  | 7,351 |  |  |  | 9,300 |
Contract termination and amendment costs |  |  | - |  |  |  | - |  |  |  | 15,100 |
Total |  | $ | 22,966 |  |  | $ | 17,429 |  |  | $ | 46,700 |

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- Definition Summary of curtailment of operations for Ravenswood and Hawesville facilities. + References No definition available. + Details
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