Hello, everyone. Next up, we have Century Aluminum. Century is one of the largest U.S.-based or the largest U.S.-based primary aluminum producer. With us today is CFO, Peter. Peter, over to you.
Thank you, Katya. Good morning, everyone. We're Century Aluminum Company. We are the current U.S. largest aluminum primary producer today. As you can see here on the map, we have assets in the two shortest markets in the world. The U.S. is the number 1 shortest market. Europe is the second shortest. We have two operating smelters, one in Sebree, Kentucky, and one at Mount Holly, South Carolina. We have a new smelter announced to be built in Inola, Oklahoma. We also have an operation, Grundartangi, Iceland, that's 300,000 tons of primary aluminum that goes straight into the European market. In the U.S., by the way, we have 450,000 tons once Mount Holly is up and running. I'll talk about that in a moment.
We also moved upstream a little bit in Jamaica. We have the bauxite mines and alumina refinery. That's 1.2 million tons of annual production, and I'll talk about in a moment. We're on our way to 1.4 million tons of nameplate capacity. As I said, we announced recently a partnership with EGA, the Emirates Global Aluminium. They have the premier technology, and we're bringing that technology into the United States. It'll be the largest aluminum smelter in the Western world, 750,000 tons. EGA will own 60% of the project, and we'll own 40% of the project. Recently, we also announced the sale of Hawesville. This was an idle site in 2022 due to the Ukraine-Russian war and high power prices. It's been idle for four years.
We sold Hawesville to TeraWulf. TeraWulf is a HPC AI data center company. Century will retain a 6.8% interest in the fully completed data center. Last week, we had our earnings call. This is a normal slide that we put in the deck when we talk about the next 90 days. Looking ahead here, on the left-hand side, this is what we just had put out. We're expecting to do $225 million at realized prices. What that means is Century receives its revenue on a lag. Most of our revenues are lagging current spot prices in the aluminum markets. If you just took today's spot price environment, global aluminum prices are $3,100, LME.
US Midwest prices are $1.04 a pound. The European premium is $365 a ton. If you take those, you just use our sensitivities, which is just based on production and is found in the appendix of all of our earnings materials, you'll see that we'll have an incremental $55 million uplift to that guide. The last thing here that we have is the power. In the first quarter, we had about a two-week temporary price hike to power prices due to Winter Storm Finn. We saw about a $20 million headwind there. This is the Indy Hub price under MISO for our Sebree smelter. It's our only market exposure on power.
If you just took that and marked it to a normal forward-looking quarter, you'll see here about another $25 million uplift. Combine $80 million to our Q1 guide, total of $300 million of quarterly run rate, adjusted EBITDA at spot prices, and this is before the expansion at Mont Holly, and I'll just end on that and turn to Katya. The Mont Holly expansion will begin in April. We're taking the last 25% of idle capacity, and we'll be ramping that up. When that's complete in end of June, we're also bringing a line back up from some transformer failures in Iceland.
Around the middle of summer, we'll be about 770,000 tons of annualized capacity on current production, that'll be the first time all of our operating assets will be up and running at 100% in nearly 10 years. Thank you for the time here, and, Katya, I'll turn it to you.
You mentioned the, on the slide, $300 million in quarterly EBITDA on current spot prices, and that's before the restart on Mount Holly. How much, based if you look at the restart, the incremental volume, how much of EBITDA could add, that add on spot?
Yeah, it's a great question. We didn't guide exactly how much incremental EBITDA Mont Holly would provide. It's 50,000 tons. It'll take it to about 220,000 tons of annual production. On our last, I guess, 2 calls ago in November, when we announced the restart, we said the payback would be before the end of this year. Ramping up in the second quarter, payback before the end of the year, that was at the lagged aluminum price environment that I was showing on the screen as well. Today, prices are much higher. I would expect that to pay back even sooner, even earlier, before the end of the year. It's a very, very high profitable, high-return project for us. Those incremental tons are the most profitable, and we're excited to get them back on.
You mentioned the price of aluminum is pretty healthy right now. The Midwest premium is more than covering the imports, the cost of imports. How are you thinking about the prices for the rest of the year? Do you think on an aluminum side, is the elevated pricing impacting demand in any way? Are you starting to see or hear about more imports coming into the U.S. market?
I think demand is really strong, especially here in the United States. The tariffs are certainly working and has not hurt demand whatsoever. The tariffs have been around since 2018, when President Trump first came into administration, and we've only seen aluminum prices strengthen. We think demand is good. You know, we can talk about supply, you know, globally first and, you know, in China, we've seen the 45 million cap be implemented, and because of that and the discipline that we're seeing in China, you know, we're not seeing excess supply coming over to the U.S. I think that speaks to the price environment.
There's this ongoing conversation about sustainability of tariffs, or it comes and goes. We heard a few weeks ago, a potential of some of the downstream products receiving some exemptions. How are you thinking about tariffs environment, especially after the Friday's changes?
Yeah. I sort of mentioned it, on the previous question, but tariffs are, especially Section 232, steel and aluminum tariffs, are here to stay. You know, they've been around, like I said, since the first Trump administration, so 8 years now, and they've only strengthened since Trump 2.0 has come back into office. They also survived the Biden administration, so they've survived both sides, and they've lived their day in court. When we hear about other tariffs and the Supreme Court ruling down, this has nothing to do with Section 232, steel and aluminum tariffs. We feel really good about those.
I think the big change this time around is that all the exemptions have been removed, and that's with no exception. I think going from 25% to 50% leads to the price environment we're seeing today. We truly believe that these are here to stay, and we're doing our part to deliver units into the U.S. with the Mount Holly expansion and our new project announced in Oklahoma.
You mentioned a new project, partnering with EGA. Why the decision to partner?
Yeah, EGA is one of the premier technology providers in the world. They're a great, you know, Western producer. We wanted to de-risk the project and make sure that this project does get built. When we were looking around to technology providers, EGA stood out far, far ahead, and we wanted to partner with them, de-risk the project, and ensure that we can build the largest aluminum smelter in the Western world ever.
Can you just remind us, maybe, and I know this is still early on the project, financing side, are there opportunities for you to get any type of project-level financing from the government?
Yeah, there's 3 major milestones. The first is the power contract that we're finalizing. The second is the engineering so that we can get the CapEx. We announced that we're working with Bechtel on that. The third is the financing of the project. All options are available to us. We have the $500 million grant from the DOE, and we're excited to put that to use and apply it to the project. We're also looking at a myriad of different opportunities within the Department of Energy, as well as other opportunities within the U.S. government to get very attractive, excuse me, borrowing rates for the project. I think all those 3 major milestones should wrap up within this year. We're looking to do a final investment decision with EGA in the fourth quarter this year.
On the Hawesville, you received $200 million in cash, but then you also are maintaining a minority interest. Can you tell us how we should think about the value of that minority interest?
Yeah, good question. The way you should think about the value of the minority interest is really in excess of the upfront contribution that we received. We didn't guide exactly on what that is, but we have an option to put to TeraWulf, sort of a floor, if you will, one year anniversary from energization of that fully completed data center. If you think about what we received upfront and what I just said about being in excess of that, sometime in 2028, we could probably look at that option, or we could retain it, or we can monetize it in other ways. With that floor and that strike, that gives us liquidity assurance towards potentially a new smelter in the US and funding for that.
Capital allocation is topical in this space, especially with the profitability as it is. How are you thinking you're getting towards your targets right now on the debt level? How are you thinking going forward, especially between maybe further debt paydowns and shareholder returns?
Yeah, great question. Last week on our earnings call, we talked a little bit about this. We fell just short of our net debt target at year-end, and that due to some of the mismatched timing as a result of the Iceland equipment failure. You know, we had the lost margin, and then we get insurance proceeds thereafter, and so we had a little bit of mismatch. If you look at our insurance proceeds in the first quarter, coupled with our Section 45X receivable, $175 million, also looking at the Hawesville proceeds, we're certainly at our net debt targets today, I think what we said is we'll update on our Q1 call. We're looking forward to these investments that we have organically, mainly the Mount Holly aluminum expansion. That's about $45 million.
We're also doing multi-year projects at Jamalco. We have a new power generator beginning in April of this year that'll lower the cost structure at Jamalco immediately, start to move it towards the second quartile, which has been our objective since we bought it. We're also gonna be bringing Iceland back on. It's gonna be a very busy Q2 for us. We're excited to get there, and I think on the Q1 call, you'll hear a lot about us prioritizing those investments.