1
                                      E X E C U T I O N   C O P Y


               EIGHTH AMENDMENT TO CREDIT AGREEMENT

          THIS EIGHTH AMENDMENT TO CREDIT AGREEMENT (this
"Amendment"), dated as of February 24, 1997, is by and between
KAISER ALUMINUM & CHEMICAL CORPORATION, a Delaware corporation
(the "Company"), KAISER ALUMINUM CORPORATION, a Delaware
corporation (the "Parent Guarantor"), the various financial
institutions that are or may from time to time become parties to
the Credit Agreement referred to below (collectively, the
"Lenders" and, individually, a "Lender"), and BANKAMERICA
BUSINESS CREDIT, INC., a Delaware corporation, as agent (in such
capacity, together with its successors and assigns in such
capacity, the "Agent") for the Lenders.  Capitalized terms used,
but not defined, herein shall have the meanings given to such
terms in the Credit Agreement, as amended hereby.

                       W I T N E S S E T H:

          WHEREAS, the Company, the Parent Guarantor, the Lenders
and the Agent are parties to the Credit Agreement, dated as of
February 15, 1994, as amended by the First Amendment to Credit
Agreement, dated as of July 21, 1994, the Second Amendment to
Credit Agreement, dated as of March 10, 1995, the Third Amendment
to Credit Agreement and Acknowledgement, dated as of July 20,
1995, the Fourth Amendment to Credit Agreement, dated as of
October 17, 1995, the Fifth Amendment to Credit Agreement dated
as of December 11, 1995, the Sixth Amendment to Credit Agreement
dated as of October 1, 1996 and the Seventh Amendment to Credit
Agreement dated as of December 17, 1996 (the "Credit Agreement");
and

          WHEREAS, the parties hereto have agreed to amend the
Credit Agreement as herein provided;

          NOW, THEREFORE, the parties hereto agree as follows:

          Section 1.  Amendment to Credit Agreement.

          A.   Section 9.2.4 of the Credit Agreement is hereby
amended by amending clause (b) thereof to read in its entirety as
follows:

          "(b) Interest Coverage Ratio.  The Company shall not
permit the Interest Coverage Ratio (i) for the one Fiscal Quarter
period ending March 31, 1996 to be less than 1.1 to 1.0, (ii) for
the two Fiscal Quarter period ending June 30, 1996 to be less
than 1.2 to 1.0, (iii)

                                1
   2

for the three Fiscal Quarter period ending September 30, 1996 to be less
than 0.5 to 1.0, (iv) for the four Fiscal Quarter period ending December
31, 1996 to be less than 0.3 to 1.0, (v) for the one Fiscal Quarter
period ending June 30, 1997 to be less than 0.2 to 1.0, (vi) for the two
Fiscal Quarter period ending September 30, 1997 to be less than 0.4 to
1.0, (vii) for the three Fiscal Quarter period ending December 31, 1997
to be less than 0.6 to 1.0 and (viii) for the four Fiscal Quarter period
ending on the last day of each of the Fiscal Quarters set forth below to
be less than the correlative ratio indicated:

     Date                                          Ratio
     ----                                          -----
     First Fiscal Quarter of 1998                 0.8 to 1.0
     Second Fiscal Quarter of 1998                1.2 to 1.0
     Third Fiscal Quarter of 1998                 1.6 to 1.0
     Fourth Fiscal Quarter of 1998                2.0 to 1.0
          and each Fiscal Quarter thereafter"

     Section 2.  Conditions to Effectiveness.

     This Amendment shall become effective as of the date
hereof only when the following conditions shall have been
satisfied and notice thereof shall have been given by the Agent
to the Parent Guarantor, the Company and each Lender (the date of
satisfaction of such conditions and the giving of such notice
being referred to herein as the "Eighth Amendment Effective
Date"):

     A.   The Agent shall have received for each Lender
counterparts hereof duly executed on behalf of the Parent
Guarantor, the Company, the Agent and the Required Lenders (or
notice of the approval of this Amendment by the Required Lenders
satisfactory to the Agent shall have been received by the Agent).

     B.   The Agent shall have received:

          (1)  Resolutions of the Board of Directors or of
the Executive Committee of the Company and the Parent Guarantor
approving and authorizing the execution, delivery and performance
of this Amendment, certified by its corporate secretary or an
assistant secretary as being in full force and effect without
modification or amendment as of the date of execution hereof by
the Company or the Parent Guarantor, as the case may be;

          (2)  A signature and incumbency certificate of the
officers of the Company and the Parent Guarantor executing this
Amendment;

          (3)  For each Lender an opinion, addressed to the
Agent and each Lender, from Kramer, Levin, Naftalis, Nessen,
Kamin & Frankel, in form and substance satisfactory to the Agent;
and

                                2

   3

          (4)  Such other information approvals, opinions,
documents, or instruments as the Agent may reasonably request.

          Section 3.  Company's Representations and Warranties.

          In order to induce the Lenders and the Agent to enter
into this Amendment and to amend the Credit Agreement in the
manner provided herein, the Parent Guarantor and the Company
represent and warrant to each Lender and the Agent that, as of
the Eighth Amendment Effective Date after giving effect to the
effectiveness of this Amendment, the following statements are
true and correct in all material respects:

          A.   Authorization of Agreements.  The execution and
delivery of this Amendment by the Company and the Parent
Guarantor and the performance of the Credit Agreement as amended
by this Amendment (the "Amended Agreement") by the Company and
the Parent Guarantor are within such Obligor's corporate powers
and have been duly authorized by all necessary corporate action
on the part of the Company and the Parent Guarantor, as the case
may be.

          B.   No Conflict.  The execution and delivery by the
Company and the Parent Guarantor of this Amendment and the
performance by the Company and the Parent Guarantor of the
Amended Agreement do not:

               (1)  contravene such Obligor's Organic Documents;

               (2)  contravene the Senior Indenture, the New
Senior Indenture, the Additional New Senior Indentures or the
Subordinated Indenture or contravene any other contractual
restriction where such a contravention has a reasonable
possibility of having a Materially Adverse Effect or contravene
any law or governmental regulation or court decree or order
binding on or affecting such Obligor or any of its Subsidiaries;
or

               (3)  result in, or require the creation or
imposition of, any Lien on any of such Obligor's properties or
any of the properties of any Subsidiary of such Obligor, other
than pursuant to the Loan Documents.

          C.   Binding Obligation.  This Amendment has been duly
executed and delivered by the Company and the Parent Guarantor
and this Amendment and the Amended Agreement constitute the
legal, valid and binding obligations of the Company and the
Parent Guarantor, enforceable against the Company and the Parent
Guarantor in accordance with their respective terms, except as
may be limited by bankruptcy, insolvency, reorganization,
moratorium or similar laws relating to or limiting creditors'
rights generally and by general principles of equity.

                                3

   4

          D.   Governmental Approval, Regulation, etc.  No
authorization or approval or other action by, and no notice to or
filing with, any governmental authority or regulatory body or any
other Person is required for the due execution, delivery or
performance of this Amendment by the Company or the Parent
Guarantor.

          E.   Incorporation of Representations and Warranties
from Credit Agreement.  Each of the statements set forth in
Section 7.2.1 of the Credit Agreement is true and correct.

          Section 4.  Acknowledgement and Consent.

          The Company is a party to the Company Collateral
Documents, in each case as amended through the date hereof,
pursuant to which the Company has created Liens in favor of the
Agent on certain Collateral to secure the Obligations.  The
Parent Guarantor is a party to the Parent Collateral Documents,
in each case as amended through the date hereof, pursuant to
which the Parent Guarantor has created Liens in favor of the
Agent on certain Collateral and pledged certain Collateral to the
Agent to secure the Obligations of the Parent Guarantor.  Certain
Subsidiaries of the Company are parties to the Subsidiary
Guaranty and/or one or more of the Subsidiary Collateral
Documents, in each case as amended through the date hereof,
pursuant to which such Subsidiaries have (i) guarantied the
Obligations and/or (ii) created Liens in favor of the Agent on
certain Collateral.  The Company, the Parent Guarantor and such
Subsidiaries are collectively referred to herein as the "Credit
Support Parties", and the Company Collateral Documents, the
Parent Collateral Documents, the Subsidiary Guaranty and the
Subsidiary Collateral Documents are collectively referred to
herein as the "Credit Support Documents".

          Each Credit Support Party hereby acknowledges that it
has reviewed the terms and provisions of the Credit Agreement as
amended by this Amendment and consents to the amendment of the
Credit Agreement effected as of the date hereof pursuant to this
Amendment.

          Each Credit Support Party acknowledges and agrees that
any of the Credit Support Documents to which it is a party or
otherwise bound shall continue in full force and effect.  Each
Credit Support Party hereby confirms that each Credit Support
Document to which it is a party or otherwise bound and all
Collateral encumbered thereby will continue to guaranty or
secure, as the case may be, the payment and performance of all
obligations guaranteed or secured thereby, as the case may be.

          Each Credit Support Party (other than the Company and
the Parent Guarantor) acknowledges and agrees that (i)
notwithstanding the conditions to effectiveness set forth in this
Amendment, such Credit Support Party is not required by the terms
of the Credit Agreement or any other Loan Document to consent
to the amendments to the Credit Agreement effected pursuant to
this Amendment and (ii) nothing in the Credit Agreement, this

                                4
   5

Amendment or any other Loan Document shall be deemed to require
the consent of such Credit Support Party to any future amendments
to the Credit Agreement.

          Section 5.  Miscellaneous.

          A.   Reference to and Effect on the Credit Agreement
and the Other Loan Documents.

               (1)  On and after the Eighth Amendment Effective
Date, each reference in the Credit Agreement to "this Agreement",
"hereunder", "hereof", "herein" or words of like import referring
to the Credit Agreement, and each reference in the other Loan
Documents to the "Credit Agreement", "thereunder", "thereof" or
words of like import referring to the Credit Agreement shall mean
and be a reference to the Amended Agreement.

               (2)  Except as specifically set forth herein, the
terms, provisions and conditions of the Credit Agreement and the
other Loan Documents shall remain in full force and effect and
are hereby ratified and confirmed.

          B.   Applicable Law.  THIS AMENDMENT SHALL BE DEEMED TO
BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE
STATE OF NEW YORK, WITHOUT GIVING EFFECT TO SUCH LAWS RELATING TO
CONFLICTS OF LAWS.

          C.   Headings.  The various headings of this Amendment
are inserted for convenience only and shall not affect the
meaning or interpretation of this Amendment or any provision
hereof.

          D.   Counterparts.  This Amendment may be executed by
the parties hereto in several counterparts and by the different
parties on separate counterparts, each of which shall be deemed
to be an original and all of which shall constitute together but
one and the same instrument; signature pages may be detached from
multiple separate counterparts and attached to a single
counterpart so that all signature pages are physically attached
to the same document.

          E.   Severability.  Any provision of this Amendment
which is prohibited or unenforceable in any jurisdiction shall,
as to such provision and such jurisdiction, be ineffective to the
extent of such prohibition or unenforceability without
invalidating the remaining provisions of this Amendment or
affecting the validity or enforceability of such provisions in
any other jurisdiction.

          IN WITNESS WHEREOF, this Amendment has been duly
executed and delivered as of the day and year first above
written.

                                5

   6


KAISER ALUMINUM CORPORATION                 KAISER ALUMINUM & CHEMICAL
                                              CORPORATION

By:                                         By:
   -----------------------------                 -----------------------------
Name Printed: Karen A. Twitchell            Name Printed: Karen A. Twitchell
Its: Treasurer                              Its: Treasurer

BANKAMERICA BUSINESS CREDIT,                BANKAMERICA BUSINESS CREDIT,
  INC., as Agent                              INC.

By:                                         By:
   -----------------------------                ------------------------------
Name: Michael J. Jasaitis                   Name: Michael J. Jasaitis
Its: Vice President                         Its: Vice President


BANK OF AMERICA NATIONAL TRUST              THE CIT GROUP/BUSINESS
  AND SAVINGS ASSOCIATION                      CREDIT, INC.

By:                                         By:
   -----------------------------                -----------------------------
Name Printed:                               Name Printed:
             -------------------                          -------------------
Its:                                        Its:
    ----------------------------                -----------------------------

CONGRESS FINANCIAL CORPORATION              HELLER FINANCIAL, INC.
   (WESTERN)

By:                                         By:
   -----------------------------               -----------------------------
Name Printed:                               Name Printed:
             -------------------                         -------------------
Its:                                        Its:
    ----------------------------                 ---------------------------

LA SALLE NATIONAL BANK                      NATIONAL WESTMINSTER BANK
                                              PLC

By:                                         By:
   -----------------------------                ---------------------------
Name Printed:                               Name Printed:
             -------------------                         ------------------
Its:                                        Its:
    ----------------------------                ---------------------------

                                   6
   7

TRANSAMERICA BUSINESS CREDIT             ABN AMRO BANK N.V.
   CORPORATION


By:                                         By:
   -----------------------------                ----------------------------
Name Printed:                               Name Printed:
             -------------------                          ------------------
Its:                                        Its:
    ----------------------------                 ---------------------------


                                            By:
                                                ----------------------------
                                            Name Printed:
                                                          ------------------
                                            Its:
                                                 ---------------------------

ACKNOWLEDGED AND AGREED TO:

AKRON HOLDING CORPORATION                   KAISER ALUMINUM & CHEMICAL
                                              INVESTMENT, INC.

By:                                         By:
   ------------------------------               -----------------------------
Name Printed: Karen A. Twitchell            Name Printed: Karen A. Twitchell
Its: Treasurer                              Its: Treasurer

KAISER ALUMINUM PROPERTIES,                 KAISER ALUMINUM TECHNICAL
   INC.                                        SERVICES, INC.

By:                                         By:
   ------------------------------               -----------------------------
Name Printed: Karen A. Twitchell            Name Printed: Karen A. Twitchell
Its: Treasurer                              Its: Treasurer

OXNARD FORGE DIE COMPANY, INC.              KAISER ALUMINUM
                                               INTERNATIONAL, INC.

By:                                         By:
   ------------------------------               -----------------------------
Name Printed: Karen A. Twitchell            Name Printed: Karen A. Twitchell
Its: Treasurer                              Its: Treasurer

KAISER ALUMINA AUSTRALIA                    KAISER FINANCE CORPORATION
  CORPORATION

By:                                         By:
   ------------------------------               -----------------------------
Name Printed: Karen A. Twitchell            Name Printed: Karen A. Twitchell
Its: Treasurer                              Its: Treasurer


                                   7

   8
ALPART JAMAICA INC.                         KAISER JAMAICA CORPORATION

By:                                         By:
   -------------------------------              -----------------------------
Name Printed: Karen A. Twitchell            Name Printed: Karen A. Twitchell
Its: Treasurer                              Its: Treasurer

KAISER BAUXITE COMPANY                      KAISER EXPORT COMPANY

By:                                         By:
   -------------------------------              -----------------------------
Name Printed: Karen A. Twitchell            Name Printed: Karen A. Twitchell
Its: Treasurer                              Its: Treasurer

KAISER MICROMILL HOLDINGS, LLC              KAISER SIERRA MICROMILLS, LLC

By:                                         By:
   -------------------------------              ------------------------------
Name Printed: Karen A. Twitchell            Name Printed: Karen A. Twitchell
Treasurer of Kaiser Aluminum                Its: Treasurer
& Chemical Corporation

KAISER TEXAS SIERRA MICROMILLS,             KAISER TEXAS MICROMILL
LLC                                         HOLDINGS, LLC

By:                                         By:
   -------------------------------              ------------------------------
Name Printed: Karen A. Twitchell            Name Printed: Karen A. Twitchell
Its: Treasurer                              Its: Treasurer



                                   8