By Ernest Scheyder
Sept 18 (Reuters) - US President Donald Trump's goal of building a large aluminum smelter in Oklahoma passed a major hurdle in late August when Republican voters nominated a candidate for governor who supports its construction after an unusually tough primary battle.
The project must now overcome significant opposition in the small rural community of Inola, where many residents are working to block plans by Emirates Global Aluminium and Century Aluminum to build the $4 billion smelter.
A moratorium on smelter permits — which Inola officials imposed in June — was set to expire on September 28, but the city council voted unanimously on September 14 to extend it through April 2027 and to hold a referendum on whether it should be built.
City officials had supported the project for years before turning against it earlier this year.
Aluminum is essential to transportation, defense, aerospace and electrical infrastructure, but the US imports roughly 60% of the primary aluminum it uses.
Here's a look at what's next for the project, which would be the Western Hemisphere's largest source of the critical mineral and the first aluminum smelter built in the US since 1980.
WHY IS THE SMELTER AN ISSUE IN THE GOVERNOR'S RACE?
The proposed smelter, which would produce 750,000 metric tons per year of aluminum, emerged as a key issue in the contentious race for Oklahoma governor.
Gentner Drummond, the state's attorney general who ran for the Republican nomination for governor, opposes the project over environmental concerns and filed a lawsuit in June in state court seeking to block it.
Drummond's opponent, former state Senator Mike Mazzei, had opposed the project until the day Trump endorsed him in May.
Neither Drummond nor Mazzei garnered 50% of the vote in a June primary. That forced an August 25 runoff that Mazzei won by less than a percentage point, roughly 2,000 votes.
Days ahead of the runoff, Trump said in a social media post that there were "20 other sites that would love to have" the smelter if it were not built in Oklahoma.
WHAT IS THE STATUS OF DRUMMOND'S LAWSUIT?
EGA and Century Aluminum tried to move Drummond's lawsuit to federal court, citing aluminum's importance to US national security.
The US Justice Department commented in support of the project and against the lawsuit, saying it is "committed to supporting military readiness and opposing litigation that subverts environmental regulatory processes established by Congress."
Earlier this month, though, a federal judge granted Drummond's request to have the suit remain in state court, where the case is continuing.
WHAT DO LOCAL OFFICIALS SAY ABOUT THE PROJECT?
The Inola City Council voted in June for the moratorium after a contentious public hearing in which some residents suggested the smelter should be built at Mar-a-Lago, Trump's private Florida members' club.
That moratorium was extended earlier this week through April 7, 2027, when a referendum will be held on whether the smelter should be built.
The council has jurisdiction because the smelter is being developed in Port of Inola industrial park, which was created after the Tulsa-Rogers County Port Authority bought more than 2,000 acres (809 hectares) at the site in 2019.
Term-limited Governor Kevin Stitt said the industrial park could be moved outside city limits if the Inola council continues to oppose the smelter. That would remove the smelter from the council's jurisdiction.
"The port authority has chosen to be in the city limits, and they can choose to leave," Stitt told Reuters.
It is not immediately clear how Stitt could achieve that goal as state law requires local approval for such a move. City officials did not respond to requests for comment.
WHAT ARE THE COMPANIES SAYING?
Abu Dhabi-based EGA and Chicago-based Century Aluminum said they were disappointed by the moratorium extension and think putting the smelter up for a referendum is premature given the court case.
"Moving forward with a vote before the appeals process undermines basic due process and exposes Inola taxpayers to significant financial and legal risk," the companies said in a statement.
Both companies said this month in a regulatory filing they now plan to reduce fluoride emissions from the proposed smelter by 37%. They also said they plan to release an economic impact study within weeks.
"Community trust, transparency and responsible development remain central to our approach," said Ziad Fares, a developer on the project's engineering team.
(Reporting by Ernest Scheyder;Editing by Rod Nickel)
