EXHIBIT 10.4

CONSENT AND THIRD AMENDMENT TO

REVOLVING CREDIT AGREEMENT

     This CONSENT AND THIRD AMENDMENT TO REVOLVING CREDIT AGREEMENT, dated as of
August 4, 2004 (this “Amendment”), is by and among (a) Century Aluminum Company,
a Delaware corporation (“Century Aluminum”), Berkeley Aluminum, Inc., a Delaware
corporation (“Berkeley”), Century Aluminum of West Virginia, Inc., a Delaware
corporation (“Century WV”), Century Kentucky, Inc., a Delaware corporation
(“Century K”), Metalsco, Ltd., a Georgia company (“Metalsco”) and NSA Ltd., a
Kentucky limited partnership (“NSA” and, together with Century Aluminum,
Berkeley, Century WV, Century K and Metalsco, collectively, the “Borrowers” and
each individually a “Borrower”), (b) the lending institutions which are or may
become parties to the Credit Agreement (as defined below) from time to time
(collectively, the “Lenders”) and (c) Fleet Capital Corporation as agent
(“Agent”) for the Lenders. Capitalized terms used herein without definition
shall have the meanings assigned to such terms in the Credit Agreement referred
to below.

     WHEREAS, the Borrowers, the Lenders and the Agent are parties to a
Revolving Credit Agreement, dated as of April 2, 2001 (as amended, restated,
supplemented or otherwise modified and in effect from time to time, the “Credit
Agreement”), pursuant to which the Lenders have committed to make loans or
otherwise extend credit to the Borrowers on the terms and subject to the
conditions set forth therein.

     WHEREAS, Century Aluminum intends (i) to issue unsecured convertible notes
and unsecured senior notes in private offerings, the terms of which may provide
for the repayment of principal upon conversion and other repayment and
redemption provisions (together, the “Debt Offering”) with estimated net
proceeds of up to $500 million (the “Debt Offering Proceeds”), and (ii) to use a
portion of the Debt Offering Proceeds to purchase the First Mortgage Notes
pursuant to a tender offer and consent solicitation and, if applicable, a
mandatory redemption or other repurchase (together with the Debt Offering, the
“Debt Offering and Note Repurchase”).

     WHEREAS, Gramercy Alumina (as hereinafter defined) and St. Ann Bauxite (as
hereinafter defined), Kaiser Aluminum & Chemical Corporation, a Delaware
corporation, and Kaiser Bauxite Company, a Nevada corporation (“KBC”), have
entered into that certain Purchase Agreement, dated as of May 17, 2004, a copy
of which is attached hereto as Exhibit A (the “Purchase Agreement”), pursuant to
which Gramercy Alumina and St. Ann Bauxite will consummate the Gramercy
Acquisition (as hereinafter defined).

     WHEREAS, the total consideration for the Gramercy Acquisition will be $23
million, as adjusted for working capital changes and payable in cash at the
closing, of which Century Aluminum will indirectly be responsible for fifty
percent (i.e., approximately $11.5 million) (the “Century Purchase Price”).

     WHEREAS, Century Aluminum intends to contribute or lend to the Gramercy
Acquisition Subsidiary (as hereinafter defined) (i) the Century Purchase Price
and (ii) up to $8.5 million to provide working capital to the Gramercy
Acquisition Subsidiary, Gramercy Alumina and St. Ann Bauxite (together with the
Century Purchase Price, the “Gramercy Investment”).

 

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     WHEREAS, from time to time during the two-year period after the date
hereof, Century Aluminum (directly or indirectly) intends to contribute or lend
up to $100 million in the aggregate to the Nordural Acquisition Subsidiary (or
directly to Nordural) to finance a planned expansion by Nordural and to provide
working capital to Nordural (the “Additional Nordural Investment”).

     WHEREAS, under the Credit Agreement, the Gramercy Investment, the Debt
Offering and Note Repurchase and the Additional Nordural Investment are not
permitted.

     WHEREAS, in accordance with the terms hereof, the Lenders and the Agent
have agreed to consent to the Gramercy Investment, the Debt Offering and Note
Repurchase and the Additional Nordural Investment and to specify that the
Gramercy Acquisition Subsidiary is not a Subsidiary of the Borrowers or the
Guarantors.

     NOW, THEREFORE, in consideration of the foregoing premises and for other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Borrowers, the Lenders and the Agent hereby agree as follows:

     §1. Amendment to Section 1.1 of the Credit Agreement.

          (a) Section 1.1 of the Credit Agreement is hereby amended by adding
the following new definitions to such Section 1.1 in the appropriate
alphabetical order:

               “Gramercy Acquisition.” The purchase, pursuant to the terms of
the Purchase Agreement, (i) by Gramercy Alumina of the assets comprising and
relating to the alumina refinery in Gramercy, Louisiana and (ii) by St. Ann
Bauxite of the partnership interest of KBC in the bauxite mining operation on
the north coast of Jamaica, the drying, storage and shipping facilities in Port
Rhoades, Discovery Bay, Jamaica and related assets.

               “Gramercy Acquisition Documents.” All agreements, documents and
instruments executed and/or delivered in connection with the Gramercy
Acquisition (other than the Purchase Agreement), in form and substance
consistent with the Purchase Agreement.

               “Gramercy Acquisition Subsidiary.” One or more direct or indirect
subsidiaries of Century Aluminum (which are not Borrowers or Guarantors) formed
for the purpose of, and used to consummate, the Gramercy Acquisition or the
Gramercy Investment, or which are used from time to time to hold direct or
indirect ownership interests in the respective assets and businesses to be
acquired pursuant to the Gramercy Acquisition.

               “Gramercy Alumina.” Gramercy Alumina LLC, a Delaware limited
liability company in which Century Aluminum holds an indirect fifty percent
ownership interest.

               “St. Ann Bauxite.” St. Ann Bauxite Limited, a Jamaican private
limited company in which Century Aluminum holds an indirect fifty percent
ownership interest.

               “2004 Notes.” Up to $500 million in aggregate principal amount of
unsecured convertible notes and unsecured senior notes to be issued by Century
Aluminum.

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          (b) The definition of “Subsidiary” is hereby amended by deleting such
definition in its entirety and substituting the following definition in lieu
thereof:

               “Subsidiary Any corporation, association, trust, or other
business entity of which the designated parent shall at any time own directly or
indirectly through a Subsidiary or Subsidiaries at least a majority (by number
of votes) of the outstanding Voting Stock; provided, however, that when used
with respect to the Borrowers and the Guarantors, the term Subsidiary shall not
include the European Subsidiary, the Nordural Acquisition Subsidiary or the
Gramercy Acquisition Subsidiary”.

     §2. Amendment to Section 9.1 of the Credit Agreement.

          (a) Section 9.1(m) of the Credit Agreement is hereby amended by
deleting the word “and” at the end of Section 9.1(m).

          (b) Section 9.1(n) of the Credit Agreement is hereby amended by
inserting the word “and” at the end of Section 9.1(n).

          (c) Section 9.1 of the Credit Agreement is hereby amended by inserting
the following new paragraph (o) immediately following paragraph (n):

     “(o) Indebtedness pursuant to the 2004 Notes including any unsecured
guarantees thereof by any Domestic Company Subsidiary of Century Aluminum.”

     §3. Amendment to Section 9.2 of the Credit Agreement.

          (a) Section 9.2(l) of the Credit Agreement is hereby amended by
deleting the word “and” at the end of Section 9.2(l).

          (b) Section 9.2(m) of the Credit Agreement is hereby amended by
inserting the word “and” at the end of Section 9.2(m).

          (c) Section 9.2 of the Credit Agreement is hereby amended by inserting
the following new paragraph immediately following paragraph (m):

     “(n) restrictions in the 2004 Notes which would otherwise be prohibited by
Section 9.2(vi).”

     §4. Amendment to Section 9.3 of the Credit Agreement.

          (a) Section 9.3(t) of the Credit Agreement is hereby amended by
deleting the word “and” at the end of Section 9.3(t).

          (b) Section 9.3(u) of the Credit Agreement is hereby amended by
(1) adding after the words “including pursuant to the security documents with
respect thereto” the words “or consisting of unsecured guarantees of the 2004
Notes” and (2) replacing the period at the end of Section 9.3(u) with a
semicolon.

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          (c) Section 9.3 of the Credit Agreement is hereby amended by inserting
the following new paragraph (v) immediately following paragraph (u):

     ”(v) (1) any repurchase or redemption of 2004 Notes, including through
conversion of such 2004 Notes, as required by the terms thereof, for cash, stock
or any combination thereof pursuant to the terms of indentures governing the
2004 Notes.”

     §5. Consent to Transactions. The Borrowers have requested that the Agent
and the Lenders consent to the Gramercy Investment, the Debt Offering and Note
Repurchase and the Additional Nordural Investment. Notwithstanding the
provisions of Sections 9.1, 9.2 and 9.3 of the Credit Agreement which might
limit or prohibit the Borrowers’ ability to make the Gramercy Investment, the
Debt Offering and Note Repurchase and the Additional Nordural Investment, the
Agent and the Lenders hereby consent to (i) the Gramercy Investment; provided
that (A) no Default or Event of Default has occurred and is continuing or would
result therefrom, (B) the amount of the Gramercy Investment shall not exceed
$20 million, (C) no Letters of Credit are issued in connection with the Gramercy
Acquisition and (D) for the three (3) days immediately following the closing of
the Gramercy Acquisition, no Loans are outstanding, (ii) the Debt Offering and
Note Repurchase; provided that (A) no Default or Event of Default has occurred
and is continuing or would result therefrom, (B) the principal amount of the
2004 Notes shall not exceed $500 million, and (C) the 2004 Notes are and remain
unsecured at all times and (iii) the Additional Nordural Investment; provided
that (A) the amount of the Additional Nordural Investment shall not exceed
$100 million in the aggregate, (B) at the time of any advance of the Additional
Nordural Investment, no Default or Event of Default has occurred and is
continuing or would result therefrom, and (C) at the time of any advance of the
Additional Nordural Investment, and after giving effect to such advance, the
Borrowing Availability shall not be less than $20 million.

     §6. Application of Section 10.1 of the Credit Agreement. For the avoidance
of doubt, the Agent and the Lenders confirm and agree that neither the Gramercy
Investment nor the Additional Nordural Investment will be considered to be a
Capital Expenditure which would otherwise be restricted under the terms of
Section 10.1 of the Credit Agreement.

     §7. Conditions to Effectiveness. This Amendment shall become effective at
such time as the Agent shall have received (i) a counterpart signature page to
this Amendment duly executed and delivered by each of the Borrowers and the
Majority Lenders and (ii) payment from the Borrowers, for the pro rata account
of each Lender which returns an executed counterpart signature page to this
Amendment to the Agent on or prior to 5:00 p.m. (Chicago time) on August 4,
2004, of an amendment fee equal to $50,000; provided that (i) if the Purchase
Agreement is terminated by Buyers or Sellers (as defined therein), this
Amendment shall be null and void with respect to the Gramercy Investment, (ii)
if the Debt Offering and Note Repurchase shall not have been completed on or
before April 30, 2005, this Amendment shall be null and void with respect to the
Debt Offering and Note Repurchase and (iii) if the Additional Nordural
Investment shall not have been completed on or before the date which is two
years from the date hereof, this Amendment shall be null and void with respect
to any uncompleted portion of the Additional Nordural Investment.

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     §8. Affirmation of the Borrowers. Each of the Borrowers hereby affirms all
of its Obligations under the Credit Agreement and under each of the other Loan
Documents to which it is a party and hereby affirms its absolute and
unconditional promise to pay to the Lenders such Loans and other amounts as may
be due under the Credit Agreement (as amended hereby) and the other Loan
Documents.

     §9. Representations and Warranties. Each of the Borrowers hereby represents
and warrants to the Lenders and the Agent as follows:

          (a) Representations and Warranties. Each of the representations and
warranties contained in Section 7 of the Credit Agreement were true and correct
in all material respects when made, and, after giving effect to this Amendment,
are true and correct in all material respects on and as of the date hereof,
except to the extent of changes resulting from transactions contemplated or
permitted by the Credit Agreement (as amended hereby) and the other Loan
Documents, changes occurring in the ordinary course of business that singly or
in the aggregate do not result in a Material Adverse Effect and to the extent
that such representations and warranties relate specifically to a prior date.

          (b) Enforceability. The execution and delivery by each of the
Borrowers of this Amendment, and the performance by each of the Borrowers of
this Amendment and the Credit Agreement, as amended hereby, are within the
corporate authority of such Borrower and have been duly authorized by all
necessary corporate proceedings. This Amendment and the Credit Agreement, as
amended hereby, constitute valid and legally binding obligations of each of the
Borrowers, enforceable against it in accordance with their terms, except as
limited by bankruptcy, insolvency, reorganization, moratorium or similar laws
relating to or affecting the enforcement of creditors’ rights in general.

          (c) No Default. No Default or Event of Default has occurred and is
continuing, and no Default or Event of Default will result from the execution,
delivery and performance by each of the Borrowers of this Amendment or from the
consummation of the transactions contemplated herein.

     §10. No Amendments, etc. Except as expressly provided in this Amendment,
(a) all of the terms and conditions of the Credit Agreement and the other Loan
Documents remain unchanged, and (b) all of the terms and conditions of the
Credit Agreement, as amended hereby, are hereby ratified and confirmed by each
of the Borrowers and remain in full force and effect. Nothing herein shall be
construed to be an amendment, consent or a waiver of any requirements of any of
the Borrowers or of any other Person under the Credit Agreement or any of the
other Loan Documents except as expressly set forth herein. Nothing in this
Amendment shall be construed to imply any willingness on the part of the Agent
or the Lenders to grant any similar or future amendment, consent or waiver of
any of the terms and conditions of the Credit Agreement or the other Loan
Documents.

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     §11. Execution in Counterparts. This Amendment may be executed in any
number of counterparts and by each party on a separate counterpart, each of
which when so executed and delivered shall be an original, but all of which
together shall constitute one instrument. In proving this Amendment, it shall
not be necessary to produce or account for more than one such counterpart signed
by the party against whom enforcement is sought.

     §12. Governing Law. This Amendment shall for all purposes be construed in
accordance with and governed by the laws of the State of New York (excluding the
laws applicable to conflict of laws, other than Section 5-1401 of the New York
General Obligations Law).

     §13. Miscellaneous. The captions in this Amendment are for convenience of
reference only and shall not define or limit the provisions hereof.

     §14. Fees and Expenses. Each of the Borrowers agrees to pay to the Agent,
on demand by the Agent, all reasonable out-of-pocket costs and expenses incurred
or sustained by the Agent in connection with the preparation of this Amendment,
including reasonable legal fees.

     §15. Copies of Gramercy Acquisition Documents. Century Aluminum covenants
and agrees to deliver to the Agent copies of (i) the executed material Gramercy
Acquisition Documents promptly after the execution and delivery thereof and
(ii) the material documents executed in connection with the Debt Offering and
Note Repurchase.

[Remainder of Page Intentionally Left Blank]

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     IN WITNESS WHEREOF, the undersigned have duly executed this Amendment as a
sealed instrument as of the date first set forth above.

         

      CENTURY ALUMINUM COMPANY
 
       

  By:        /s/ Peter C. McGuire

     

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      Name: Peter C. McGuire

      Title: Vice President
 
       

      CENTURY ALUMINUM OF WEST VIRGINIA, INC.
 
       

  By:        /s/ Peter C. McGuire

     

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      Name: Peter C. McGuire

      Title: Vice President
 
       

      BERKELEY ALUMINUM, INC.
 
       

  By:        /s/ Peter C. McGuire

     

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      Name: Peter C. McGuire

      Title: Vice President
 
       

      CENTURY KENTUCKY, INC.
 
       

  By:        /s/ Peter C. McGuire

     

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      Name: Peter C. McGuire

      Title: Vice President
 
       

      METALSCO, LTD.
 
       

  By:        /s/ Peter C. McGuire

     

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      Name: Peter C. McGuire

      Title: Vice President

 

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      NSA, Ltd., by Metalsco, Ltd., its General Partner
 
       

  By:        /s/ Peter C. McGuire

     

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      Name: Peter C. McGuire

      Title: Vice President

 

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      FLEET CAPITAL CORPORATION,
individually and as Agent
 
       

  By:        /s/ Robert J. Lund

     

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      Name: Robert J. Lund

      Title: Senior Vice President

 

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              THE CIT GROUP/BUSINESS CREDIT, INC.
      By:          /s/ Juan R. Ramirez         Name:   Juan R. Ramirez       
Title:   Assistant Vice President   

 

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            CONGRESS FINANCIAL CORPORATION
    By:          /s/ Gerard C. Wordell         Name:   Gerard C. Wordell       
Title:   Vice President   

 

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              LASALLE BUSINESS CREDIT, LLC
      By:          /s/ Beht Hammeleff         Name:   Beht Hammeleff       
Title:   Vice President   

 

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              GE BUSINESS CAPITAL CORPORATION
(formerly known as, TRANSAMERICA
BUSINESS CAPITAL CORPORATION)
      By:          /s/ Matthew N. McAlpine         Name:   Matthew N. McAlpine 
      Title:   Duly Authorized Signatory   

 

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              CREDIT SUISSE FIRST BOSTON
      By:          /s/ Alain Daoust         Name:   Alain Daoust        Title:  
Director     

                  By:          /s/ Peter Chauvin         Name:   Peter Chauvin 
      Title:   Vice President   

 

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              CITIZENS BUSINESS CREDIT COMPANY, a
Division of Citizens Leasing, Inc.,
a Massachusetts Corporation
      By:         /s/ Paul A. Rebholz         Name:   Paul A. Rebholz       
Title:   Vice President   

 

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     Each of the undersigned Guarantors hereby acknowledges and consents to the
foregoing Amendment and agrees that the Guarantee, dated as of April 2, 2001, in
favor of the Agent and the Lenders remains in full force and effect and each
Guarantor ratifies and confirms all of its obligations thereunder.

     
SKYLINER, INC.
   
 
   
By:    /s/ Peter C. McGuire
   

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Name: Peter C. McGuire
   
Title: Vice President
   
 
   
VIRGIN ISLANDS ALUMINA
   
CORPORATION LLC
   
 
   
By:    /s/ Peter C. McGuire
   

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Name: Peter C. McGuire
   
Title: Vice President
   
 
   
HANCOCK ALUMINUM LLC
   
 
   
By:    /s/ Peter C. McGuire
   

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Name: Peter C. McGuire
   
Title: Vice President