Vanalco, Inc., a Delaware S Corporation, Richard L. Smith, Tax Matters Person - Page 7




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          brick.  The crew then installs the carbon sidewall blocks around            
          the sides of the shell to cover the area from the cathode blocks            
          to the top of the shell.  Finally, the crew rams paste around and           
          between the cathode blocks to create a smooth, solid cell cavity.           
               After the lining is replaced, the collector bars are                   
          connected to a ring bus, the steel superstructure is reinstalled            
          above the cell, new anodes are hung from the superstructure, and            
          the cell shields are reinstalled over the shell.  Finally, the              
          cell is reconnected to the pot line; however, the relined shell             
          is not operational until the replacement lining and cathode                 
          blocks have "baked" for 48 hours.  The average time for a cell to           
          be out of service for replacement of its lining is 15 days.                 
               Unless otherwise noted, the 1992 and 1993 replacement costs            
          (including labor and allocable overhead) for the cell components            
          and the average useful life in years for each component are as              
          follows:                                                                    
           Component                 Cost               Average Life                  
          Cell lining              1$17,933                 3.0                       
          Cell cradle              5,583                    226.4                     
          Shell                    10,084                   353.8                     
          Carbon anode             1,184                     40.0                     
          Anode assembly:                                                             
          Copper rods              2,240                    5.0                       
          Steel stubs                   423            1.0                            
          Bolts                        249                 4.1                       
          Nuts                14                            0.5                       
          Cast iron           13                            0.3                       
          Cell shield              580                 10.4                           
          Anode clamp              197                      5.3                       
          Flexible strap           2,166               13.0                           





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