SCHEDULE 14A INFORMATION

Proxy Statement Pursuant to Section 14(a) of the Securities
Exchange Act of 1934
                                 (Amendment No.  )

Filed by the Registrant [X]
Filed by a Party other than the Registrant [ ]

Check the appropriate box:

[ ] Preliminary Proxy Statement
[x] Definitive Proxy Statement
[ ] Definitive Additional Materials
[ ] Soliciting Material Pursuant to (S)240.14a-11(c) or
    (s)240.14a-12

                         KAISER ALUMINUM CORPORATION

               (Name of Registrant as Specified In Its Charter)


                         KAISER ALUMINUM CORPORATION

               (Name of Person(s) Filing Proxy Statement)

Payment of Filing Fee (check the appropriate box):

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    14a-6(j)(2).
[ ] $500 per each party to the controversy pursuant to Exchange
    Act Rule 14a-6(i)(3).
[ ] Fee computed on table below per Exchange Act Rules
    14a-6(i)(4) and 0-11.

    1)  Title of each class of securities to which transaction
        applies:

    2)  Aggregate number of securities to which transaction 
        applies:

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        computed pursuant to Exchange Act Rule 0-11:*

    4)  Proposed maximum aggregate value of transaction:

    *   Set forth the amount on which the filing is calculated
        and states how it was determined.

[ ] Check box if any part of the fee is offset as provided by
    Exchange Act Rule 0-11(a)(2) and identify the filing for
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    previous filing by registration statement number, or the 
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    Notes:





<PAGE> 


                                     [KAC Logo]




                                                                April 29, 1994


     To Our Stockholders:

          You are cordially invited to attend the Annual Meeting of
     Stockholders (the "Annual Meeting") of Kaiser Aluminum Corporation (the
     "Company") to be held at 9:00 a.m. on Wednesday, May 25, 1994, at the
     Westchase Hilton Hotel, 9999 Westheimer Road, Houston, Texas.

          At the Annual Meeting, the holders of the Company's common stock,
     par value $.01 per share (the "Common Stock"), $.65 Depositary Shares
     (the "Depositary Shares") and 8.255% PRIDES SM, Convertible Preferred
     Stock, par value $.05 per share (the "PRIDES") (all such holders being
     collectively referred to as the "Stockholders") will consider and vote,
     as a single class, in the election of directors.

          Each Depositary Share represents one tenth of a share of the
     Company's Series A Mandatory Conversion Premium Dividend Preferred Stock,
     par value $.05 per share (the "Series A Shares").  The Series A Shares
     have been deposited with The First National Bank of Boston, as Depositary
     (the "Depositary").  As the registered holder of the Series A Shares, the
     Depositary will vote the Series A Shares represented by the Depositary
     Shares at the Annual Meeting pursuant to instructions given to the
     Depositary by the holders of such Depositary Shares.  Holders of
     Depositary Shares will therefore exercise their vote by instructing the
     Depositary pursuant to the instruction card enclosed with the proxy
     statement.

          Holders of shares of PRIDES have 4/5 vote for each share held of
     record and are entitled to vote together with the holders of Common
     Stock.

          Each Stockholder of record at the close of business on March 31,
     1994 is entitled to receive notice of and vote at the Annual Meeting and
     is urged to attend the Annual Meeting.  Whether or not you intend to be
     present at the Annual Meeting, we urge you to complete, date, sign and
     promptly return the enclosed proxy card or instruction card, as the case
     may be.

          We look forward to seeing as many of you as possible at the Annual
     Meeting.





                                             GEORGE T. HAYMAKER, JR.
                                             Chairman of the Board and
                                               Chief Executive Officer 
 


                            KAISER ALUMINUM CORPORATION
                            5847 San Felipe, Suite 2600
                                Houston, Texas 77057



                      NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
                              To Be Held May 25, 1994


               The Annual Meeting of Stockholders (the "Annual Meeting") of
     Kaiser Aluminum Corporation (the "Company") will be held at the Westchase
     Hilton Hotel, 9999 Westheimer Road, Houston, Texas, on Wednesday, May 25,
     1994, at 9:00 a.m., Houston time, for the following purposes:

               1.   To elect six (6) directors to hold office until the
                    Company's 1995 Annual Meeting of Stockholders or
                    until their respective successors are elected and
                    qualified; and

               2.   To transact such other business as may properly be
                    presented to the Annual Meeting or any adjournments
                    or postponements thereof.

               Holders of record of the Company's common stock, par value $.01
     per share (the "Common Stock"), $.65 Depositary Shares (the "Depositary
     Shares") and 8.255% PRIDES , Convertible Preferred Stock, par value $.05
     per share (the "PRIDES") (all such holders being collectively referred to
     as the "Stockholders") as of the close of business on March 31, 1994 are
     entitled to notice of and to vote at the Annual Meeting.  All
     Stockholders will vote as a single class at the Annual Meeting. 
     Stockholders' lists will be available commencing May 11, 1994, and may be
     inspected for purposes germane to the Annual Meeting during normal
     business hours prior to the Annual Meeting at the offices of the Company,
     5847 San Felipe, Suite 2600, Houston, Texas.

                                        By Order of the Board of Directors




                                        BYRON L. WADE
                                        Secretary
 
    April 29, 1994



                                     IMPORTANT

          PLEASE COMPLETE, DATE AND SIGN THE ENCLOSED PROXY OR INSTRUCTION
     CARD, AS THE CASE MAY BE, AND RETURN IT PROMPTLY IN THE ENCLOSED ENVELOPE
     PROVIDED FOR YOUR CONVENIENCE AND WHICH REQUIRES NO POSTAGE IF MAILED IN
     THE UNITED STATES.  ANY HOLDER OF COMMON STOCK OR PRIDES ENTITLED TO VOTE
     AND PRESENT AT THE ANNUAL MEETING MAY VOTE PERSONALLY ON ALL MATTERS
     BROUGHT BEFORE THE ANNUAL MEETING AND, IN THAT EVENT, HIS OR HER PROXY
     WILL NOT BE USED.  HOLDERS OF DEPOSITARY SHARES MAY ONLY VOTE BY
     COMPLETING THE ENCLOSED INSTRUCTION CARD AND RETURNING THE CARD TO THE
     DEPOSITARY.  THE DEPOSITARY WILL VOTE THE SERIES A MANDATORY CONVERSION
     PREMIUM DIVIDEND PREFERRED STOCK (THE "SERIES A SHARES") REPRESENTED BY
     THE DEPOSITARY SHARES IN ACCORDANCE WITH SUCH INSTRUCTIONS.  IN THE
     ABSENCE OF SPECIFIC INSTRUCTIONS FROM THE HOLDERS OF DEPOSITARY SHARES, 
     THE DEPOSITARY WILL ABSTAIN FROM VOTING WITH RESPECT TO THE SERIES A
     SHARES UNDERLYING THE DEPOSITARY SHARES FOR WHICH NO INSTRUCTIONS HAVE
     BEEN GIVEN. 



                            KAISER ALUMINUM CORPORATION
                            5847 SAN FELIPE, SUITE 2600
                                HOUSTON, TEXAS 77057


                                  PROXY STATEMENT
                                        for
                           ANNUAL MEETING OF STOCKHOLDERS
                              To Be Held May 25, 1994

               This proxy statement is furnished to Stockholders (as defined
     below) in connection with the solicitation of proxies on behalf of the
     Board of Directors of Kaiser Aluminum Corporation (the "Company"), a
     Delaware corporation, to be voted at an Annual Meeting of Stockholders
     (the "Annual Meeting") to be held on May 25, 1994 and any adjournments
     thereof, at the time and place and for the purposes set forth in the
     accompanying Notice of Annual Meeting.  The principal executive offices
     of the Company are located at 5847 San Felipe, Suite 2600, Houston, Texas
     77057, telephone (713) 267-3777.

               This proxy statement, the accompanying proxy or instruction
     card, as the case may be, and the Notice of Annual Meeting are being
     mailed to the record holders as of the close of business on March 31,
     1994 of the Company's common stock, par value $.01 per share (the "Common
     Stock"), $.65 Depositary Shares (the "Depositary Shares"), and Preferred
     Redeemable Increased Dividend Equity Securities , 8.255% PRIDES ,
     convertible preferred stock, par value $.05 per share (the "PRIDES") (all
     such holders being collectively referred to as the "Stockholders")
     commencing on or about May 2, 1994.  

               We cordially invite you to attend the Annual Meeting.  Whether
     or not you plan to attend, please complete, date, sign and promptly
     return your proxy card in the enclosed envelope if you are a holder of
     Common Stock or PRIDES or your instruction card if you are a holder of
     Depositary Shares.  If you are a holder of Common Stock or PRIDES, you
     may revoke your proxy at any time prior to its exercise at the Annual
     Meeting by giving notice to the Company's Secretary, by filing a later
     dated proxy or, if you attend the Annual Meeting, by voting your shares
     in person.  If you are a holder of Depositary Shares, you may revoke your
     instruction to The First National Bank of Boston, as Depositary ("the
     Depositary") at any time prior to the second business day immediately
     preceding the date of the Annual Meeting by giving notice to the
     Depositary or by filing a later dated instruction card with the
     Depositary.  Proxies will be voted in accordance with the directions
     specified thereon or, in the absence of instructions, "FOR" the election
     of the directors named in this proxy statement.  Holders of Depositary
     Shares may only vote by completing the enclosed instruction card and
     returning the card to the Depositary.  Each Depositary Share represents
     one-tenth of a share of the Company's Series A Mandatory Conversion
     Premium Dividend Preferred Stock (the "Series A Shares").  The Depositary
     will vote the Series A Shares represented by the Depositary Shares in
     accordance with such instructions.  In the absence of specific
     instructions from the holders of Depositary Shares, the Depositary will
     abstain from voting with respect to the Series A Shares underlying the
     Depositary Shares for which no instructions have been given.  Under
     applicable Delaware law, abstentions and broker non-votes will have no
     effect on the outcome of the election of directors.  Abstentions and
     broker non-votes are counted for purposes of determining the presence or
     absence of a quorum for the transaction of business. 

                               ELECTION OF DIRECTORS

               At the Annual Meeting, six directors will be elected by the
     stockholders to serve until the 1995 Annual Meeting or until their
     respective successors are duly elected and qualified.  The six nominees
     receiving the highest number of votes will be elected.  

               The six persons nominated for election to the Board of
     Directors at the Annual Meeting, all of whom are now currently members of
     the Board of Directors, are Robert J. Cruikshank, George T. Haymaker,
     Jr., Charles E. Hurwitz, Ezra G. Levin, Robert Marcus and Paul D. Rusen. 
     See, "Executive Officers and Directors" and "Principal Stockholders" for
     information concerning each of the nominees, including the dates on which
     they first became directors, their business experience during the past
     five years and the number of shares of the Company's capital stock owned
     beneficially by each of them as of March 31, 1994.  Each of the nominees
     has consented to serve as a member of the Board of Directors if elected.

               The persons named in the proxies will vote the shares
     represented thereby for the election of the foregoing named nominees
     except where authority has been withheld as to a particular nominee or as
     to all such nominees.  Should any nominee decline or be unable to serve
     as a director of the Company, which is not anticipated, the persons named
     in the proxies will vote for the election in his stead of such other
     person as the Board of Directors may recommend.

               THE BOARD OF DIRECTORS RECOMMENDS A VOTE "FOR" THE ELECTION OF
     ALL NOMINEES FOR DIRECTOR OF THE COMPANY.


                     THE BOARD OF DIRECTORS AND ITS COMMITTEES

               The Board of Directors of the Company (sometimes referred to
     herein as the "Board") held four meetings and acted by written consent on
     twelve occasions during 1993.  In addition, management confers frequently
     with its directors on an informal basis to discuss Company affairs. 
     During 1993, no director attended fewer than 75% of the aggregate of the
     meetings of the Board and all Committees on which he served, except for
     John B. Connally who, due to illness, attended 60% of such meetings.

               The Board of Directors of the Company has several standing
     committees, including Executive, Audit and Compensation Committees.

               The Executive Committee meets on call and has authority to act
     on most matters during the intervals between meetings of the entire Board
     of Directors.  Its current members are Messrs. Haymaker and Hurwitz
     (Chairman).  The Committee held one meeting and acted by written consent
     four times during 1993.

               The Audit Committee presently consists of Messrs. Levin, Marcus
     (Chairman) and Rusen.  The Audit Committee meets with appropriate Company
     financial and legal personnel, internal auditors and independent public
     accountants and reviews the internal controls of the Company and the
     objectivity of its financial reporting.  This Committee recommends to the
     Board the appointment of the independent public accountants to serve as
     auditors in examining the corporate accounts of the Company.  The
     independent public accountants periodically meet privately with the Audit
     Committee and have access to the Committee at any time.  The Audit
     Committee met on two occasions during 1993. 

               The Compensation Committee reviews and advises management,
     makes recommendations to the Board, and reviews and approves proposals
     regarding the establishment or change of benefit plans, salaries or
     compensation afforded the executive officers and other employees of the
     Company.  Messrs. Cruikshank, Levin (Chairman) and Marcus currently serve
     as members of this Committee.  The Compensation Committee met on three
     occasions during 1993.

               The Board of Directors of the Company does not have a standing
     nominating committee nor does it have any committee performing a similar
     function.

     DIRECTOR COMPENSATION

               Directors who were not employees of the Company or its
     principal subsidiary, Kaiser Aluminum & Chemical Corporation ("KACC"),
     received a base fee of $30,000 for the 1993 calendar year.  Non-employee
     directors of the Company who are also directors of MAXXAM Inc.
     ("MAXXAM"), the Company's parent, may receive additional director or
     committee fees for serving as a director of the Company and/or KACC. 
     During 1993, Mr. Levin received an aggregate $7,250 in such committee
     fees from the Company and KACC.  Subject to the approval of the Chairman
     of the Board, directors may also be paid additional ad hoc fees for
     extraordinary services in the amount of $750 per half day or $1,500 per
     day for such services.  Mr. Rusen was paid additional fees of $7,500 for
     extraordinary services, and $9,963 as reimbursement for expenses incurred
     therewith, performed for the Company and KACC in 1993.  Directors are
     reimbursed for travel and other disbursements relating to Board and
     Committee meetings.  Fees to directors who are also employees of the
     Company or KACC are deemed to be included in their salary.  Directors of
     the Company are also directors of KACC and received the foregoing
     compensation for acting in both capacities.

               In addition to the compensation payable as a director for 1993,
     the Chairman of each of the Executive, Audit and Compensation Committees
     was paid a fee of $3,000 per year for services as Chairman of such
     committee.  All members of such committees receive a fee of $1,500 per
     day per committee meeting held in person on a date other than a Board
     meeting date and $500 per formal telephonic committee meeting.  

               In November 1988, one of the Company's former directors, Mr.
     John B. Connally entered into a one year consulting agreement with MAXXAM
     Group Inc. ("MGI"), a wholly owned subsidiary of MAXXAM, under which Mr.
     Connally received $250,000.  The agreement was subsequently renewed each
     year on the same terms and was effective until June 1993. 


                          EXECUTIVE OFFICERS AND DIRECTORS

               The following table sets forth certain information, as of the
     record date, with respect to the executive officers and directors of the
     Company and KACC.  All officers and directors hold office until their
     respective successors are elected and qualified or until earlier
     resignation or removal. 


     
<TABLE>

     <CAPTION>
                NAME               POSITIONS AND OFFICES WITH THE COMPANY
       ----------------------   --------------------------------------------
      <S>                      <C>
      George T. Haymaker, Jr.  Chairman of the Board, Chief Executive
                               Officer and Director
      Joseph A. Bonn           Vice President, Planning and Administration

      John T. La Duc           Vice President and Chief Financial Officer
      Anthony R. Pierno        Vice President and General Counsel
      Byron L. Wade            Vice President, Secretary and Deputy General
                               Counsel
      Charlie Alongi           Controller
      Kris S. Vasan            Treasurer

      Robert E. Cole           Vice President of KACC
      John E. Daniel           Vice President of KACC
      Richard B. Evans         Vice President of KACC
      Robert W. Irelan         Vice President, Public Relations of KACC
      Geoffrey W. Smith        Vice President of KACC
      Lawrence L. Watts        Vice President of KACC

      Robert J. Cruikshank     Director
      Charles E. Hurwitz       Director
      Ezra G. Levin            Director
      Robert Marcus            Director
      Paul D. Rusen            Director


     </TABLE>
 

               George T. Haymaker, Jr.  Mr. Haymaker, age 56, assumed the
     positions of Chairman of the Board and Chief Executive Officer of the
     Company and KACC effective January 1, 1994.  From May 1993 to December
     1993, Mr. Haymaker served as President and Chief Operating Officer of the
     Company and KACC.  Mr. Haymaker was elected a director of the Company at
     the Company's Annual Meeting of Stockholders on May 19, 1993, and was
     also elected a director of KACC at KACC's Annual Meeting of Stockholders
     held on June 15, 1993.  From 1987 to April 1993, Mr. Haymaker had been a
     partner in a partnership which acquires, redirects and operates small to
     medium sized companies in the metals industry.  He served as President
     from February 1992 to March 30, 1993, and has been a director since July
     1987 of Metalmark Corporation, which is in the business of semi-
     fabrication of aluminum specialty foils and extrusions.  From May 1986
     until February 1993, he also served as President of West Coast Sales
     Corp., which provides management and acquisition services.  Mr. Haymaker
     also served as Chief Executive Officer and a director of Amarlite
     Architectural Products, Inc. ("Amarlite"), a producer of architectural
     curtain wall and entrance products, from August 1990 to April 1992 and
     from April 1989 to February 1993, respectively.  He was a director of
     American Powdered Metals Company, which is engaged in the manufacture of
     powdered metal components, from August 1988 to March 1993, and Hayken
     Metals Asia Limited, which represents manufacturers of aluminum and metal
     products, from January 1988 to April 10, 1993.  During 1984 to 1986, Mr.
     Haymaker served as Executive Vice President--Aluminum Operations of
     Alumax Incorporated, responsible for all primary aluminum and
     semifabricating activities.  Mr. Haymaker has extensive experience in the
     management of businesses engaged in the production and sale of aluminum
     and aluminum products, including 25 years of experience in a variety of
     executive and managerial positions with Aluminum Company of America and
     its subsidiaries.  

               Joseph A. Bonn.  Mr. Bonn, age 50, has been Vice President,
     Planning and Administration of the Company and KACC since February 1992
     and July 1989, respectively.  Mr. Bonn has served as a Vice President of
     KACC since April 1987 and served as Senior Vice President--Administration
     of MAXXAM from September 1991 through December 31, 1992.  He was also
     KACC's Director of Strategic Planning from April 1987 until July 1989.

               John T. La Duc.  Mr. La Duc, age 51, has been Vice President
     and Chief Financial Officer of the Company since June 1989 and May 1990,
     respectively.  He has been Chief Financial Officer of KACC since January
     1990 and a Vice President of KACC since June 1989.  From January 1, 1993
     until April 5, 1993, Mr. La Duc served as Treasurer of the Company and
     KACC, having previously served as Treasurer of the Company from September
     1987 to May 1990 and Assistant Treasurer of the Company from February
     1987 to September 1987.  Mr. La Duc also previously served as Treasurer
     of KACC from September 1987 until January 1990, after having served as
     Assistant Treasurer of KACC from April 1985 until 1987.  He was
     Treasurer, International Operations of KACC from 1982 until 1984.  In
     September 1990, Mr. La Duc was elected Senior Vice President and Chief
     Financial Officer of MAXXAM.  Mr. La Duc also serves as a Vice President
     and Chief Financial Officer of MGI, The Pacific Lumber Company ("Pacific
     Lumber"), an indirect subsidiary of MAXXAM engaged in forest products
     operations, and Pacific Lumber's subsidiary, Scotia Pacific Holding
     Company ("Scotia Pacific").  He also serves as a director of MGI, Pacific
     Lumber and Scotia Pacific.

               Anthony R. Pierno.  Mr. Pierno, age 62, has served as Vice
     President and General Counsel of the Company and KACC since January 1992. 
     He also serves as Senior Vice President and General Counsel of MAXXAM, 
     positions he has held since February 1989.  Mr. Pierno also serves as
     Vice President and General Counsel of MGI, Pacific Lumber and Scotia
     Pacific and as a director of MGI and Pacific Lumber since November 1993. 
     Immediately prior to joining MAXXAM, Mr. Pierno served as partner in
     charge of the business practice group in the Los Angeles office of the
     law firm of Pillsbury, Madison & Sutro.  He has served as the
     Commissioner of Corporations of the state of California and as chair of
     several committees of the State Bar of California.  Mr. Pierno is
     Chairman of the Board of Trustees of Whittier College, and a former
     member and Chairman of the Board of Trustees of Marymount College.

               Byron L. Wade.  Mr. Wade, age 47, has served as Vice President
     and Secretary of the Company and KACC since January 1992, and Deputy
     General Counsel of the Company and KACC since May 1992 and June 1992,
     respectively.  Mr. Wade has also served as Vice President and Deputy
     General Counsel of MAXXAM since May 1990, and Secretary of MAXXAM since
     October 1988.  He previously served as Assistant Secretary and Assistant
     General Counsel of MAXXAM from November 1987 to October 1988 and May
     1990, respectively.  Mr. Wade has served as Vice President, Secretary and
     Deputy General Counsel of Pacific Lumber and Scotia Pacific since June
     1990 and November 1992, respectively, and as Vice President, Secretary
     and Deputy General Counsel of MGI since July 1990.  He had previously
     served since 1983 as Vice President, Secretary and General Counsel of MCO
     Resources, Inc., a publicly traded oil and gas company, which was
     majority owned by MAXXAM.  Since July 1993, Mr. Wade has served as a
     director, Vice President and Secretary of SHRP, Inc. ("SHRP"), the sole
     general partner of Sam Houston Race Park, Ltd., a Texas limited
     partnership, which has been granted a license to operate a horse racing
     facility in Harris County, Texas.  Since July 1993, Mr. Wade has also
     served as a director, Vice President and Secretary of SHRP Capital Corp.
     ("SHRP Capital"), a wholly owned subsidiary of Sam Houston Race Park,
     Ltd.

               Robert E. Cole.  Mr. Cole, age 47, has been a Vice President of
     KACC since March 1981.  Since September 1990, Mr. Cole also has served as
     Vice President--Federal Government Affairs of MAXXAM, MGI and Pacific
     Lumber.  He also currently serves as Chairman of the Board of National
     Environmental Development Association, and as a director, Secretary and
     Treasurer of Global Climate Coalition, both of which are 501(c)(6)
     organizations.

               John E. Daniel.  Mr. Daniel, age 58, has been a Vice President
     of KACC since January 1992, and has been the General Manager of KACC's
     primary aluminum products business unit since November 1990.  From
     November 1990 to January 1992, he was Divisional Vice President of the
     Company's primary aluminum products business unit.  From December 1989 to
     November 1990, Mr. Daniel was Reduction Plant Manager of the Company's
     Tacoma, Washington plant.  From July 1986 to December 1989, he was
     Reduction Plant Manager of the Company's formerly owned Ravenswood, West
     Virginia plant.

               Richard B. Evans.  Mr. Evans, age 46, has been a Vice President
     of KACC since January 1, 1992, and has been the General Manager and
     Divisional Vice President of KACC's flat-rolled products business unit
     since January 1989.  From July 1986 to January 1992, he was Divisional
     Vice President of KACC's flat-rolled products business unit.

               Geoffrey W. Smith.  Mr. Smith, age 47, has been a Vice
     President of KACC since January 1992, and has been Co-General Manager of
     KACC's alumina business unit since September 1991.  From September 1990 
     to January 1992, Mr. Smith was Divisional Vice President of KACC's
     alumina business unit.  From August 1988 to August 1990, Mr. Smith was
     Director of Business Development for the alumina business unit, and from
     1982 to August 1988, he was Operations/Technical Manager for the Gramercy
     Works.

               Lawrence L. Watts.  Mr. Watts, age 47, has been a Vice
     President of KACC since January 1992, and has been Co-General Manager of
     KACC's alumina business unit since September 1991.  From June 1989 to
     January 1992, Mr. Watts was Divisional Vice President, Governmental
     Affairs and Human Resources, for the alumina business unit, and from July
     1988 to June 1989, he was Divisional Vice President, Public Relations and
     Governmental Relations, for the alumina business unit.  From September
     1984 to July 1988, Mr. Watts was Manager, Human Resources for the alumina
     business unit.

               Charlie Alongi.  Mr. Alongi, age 63, has been the Controller of
     the Company and KACC since July 1989, and was the Assistant Controller of
     KACC from February 1982 until July 1989.

               Kris S. Vasan.  Mr. Vasan, age 44, became Treasurer of the
     Company and KACC in April 1993.  Mr. Vasan previously served the Company
     and KACC as Corporate Director of Financial Planning and Analysis from
     June 1990 until April 1993.  From October 1987 until June 1990, he served
     as Associate Director of Financial Planning and Analysis.  

               Robert J. Cruikshank.  Mr. Cruikshank, age 63, was appointed a
     director of the Company and KACC on January 26, 1994.  In addition, he
     has been a director of MAXXAM since May 1993.  Mr. Cruikshank was a
     Senior Partner in the international public accounting firm of Deloitte &
     Touche from December 1989 until his retirement in March 1993.  Prior to
     its merger with Touche Ross & Co. in December 1989, Mr. Cruikshank served
     as Managing Partner of Deloitte Haskins & Sells from June 1974 until the
     merger, and served on such firm's board of directors from 1981 to 1985. 
     Mr. Cruikshank also serves as a director of Houston Industries
     Incorporated, a public utility holding company with interests in electric
     utilities, cable television, coal and transportation businesses; Compass
     Bank of Texas; and Texas Biotechnology Incorporated.

               Charles E. Hurwitz.  Mr. Hurwitz, age 53, has served as a
     director of the Company since October 1988 and of KACC since November
     1988.  Mr. Hurwitz has also served as a member of the Board of Directors
     and the Executive Committee of MAXXAM since August 1978 and was elected
     Chairman of the Board and Chief Executive Officer of MAXXAM in March
     1980.  Since May 1982, Mr. Hurwitz has been Chairman of the Board and
     Chief Executive Officer of MGI.  Since January 1, 1993, Mr. Hurwitz has
     also served MAXXAM and MGI as President.  Since July 1993, Mr. Hurwitz
     has also served as a director and Chairman of the Board of SHRP and
     director, Chairman of the Board and President of SHRP Capital.  From May
     1986 until February 1993, Mr. Hurwitz served as a director of Pacific
     Lumber, and from December 31, 1992 until February 1993, he served as
     Chairman of the Board of Pacific Lumber.  Mr. Hurwitz has been, since
     January 1974, Chairman of the Board and Chief Executive Officer of
     Federated Development Company ("Federated"), a New York business trust
     primarily engaged in the management of real estate investments.

               Ezra G. Levin.  Mr. Levin, age 60, has been a director of the
     Company since July 1991.  He has been a director of KACC since November
     1988, and a director of MAXXAM since May 1978.  Mr. Levin also served as
     a director of the Company from April 1988 to May 1990, and as a director 
     of MGI from May 1982 through December 1993.  Mr. Levin is a partner in
     the law firm of Kramer, Levin, Naftalis, Nessen, Kamin & Frankel.  He
     serves as a trustee of Federated and as a director of Pacific Lumber,
     Scotia Pacific and UMB Bank and Trust Company.

               Robert Marcus.  Mr. Marcus, age 69, has been a director of the
     Company and KACC since September 1991.  From 1987 to January 1992, Mr.
     Marcus was a partner in American Industrial Partners, a San Francisco and
     New York based firm specializing in private equity investments in
     industrial companies.  From 1983 to 1991, Mr. Marcus was a director of
     Domtar Inc., a Canadian resource-based multi-business corporation.  From
     1982 to 1987, Mr. Marcus served as President and Chief Executive Officer
     of Alumax Inc., an integrated aluminum company.

               Paul D. Rusen.  Mr. Rusen, age 58, has been a director of the
     Company since July 1991.  Mr. Rusen previously served as a director of
     the Company from May 1987 to May 1990.  Mr. Rusen has served as a
     director of KACC since April 1986.  He is President of Employee
     Ownership, Inc., an investment banking firm, Chairman of Bliss/Salem
     Corporation, a rolling mill manufacturing company, former Chairman and
     Chief Executive Officer of Pittsburgh Forgings Company, a former director
     of Wheeling-Pittsburgh Steel Corporation and a former principal of
     Working Equity, Inc., an investment banking firm. 


                               PRINCIPAL STOCKHOLDERS

               The following table sets forth, as of March 31, 1994, the
     undiluted beneficial ownership of the Company's capital stock by (i)
     those persons known by the Company to own beneficially more than 5% of
     the shares of the capital stock then outstanding, (ii) each of the
     directors and the named executive officers, and (iii) all directors and
     executive officers of the Company as a group. 

     
<TABLE>

     <CAPTION>
 
                    Name of                           Amount and Nature of              Percent
                Beneficial Owner                      Beneficial Ownership(1)           of Class
       -----------------------------------   ----------------------------------------   --------
      <S>                                   <C>                                         <C>
      MAXXAM Inc.(2)                                Common Stock--50,000,000 shares        86%
                                                Depositary Shares--2,132,950 shares       7.6%

      Joseph A. Bonn                                   Common Stock--171,763 shares         *
      Robert J. Cruikshank                                   Common Stock--0 shares         *
      George T. Haymaker, Jr.                                Common Stock--0 shares        --
      Charles E. Hurwitz                                    Common Stock--0 shares (3)     --
      A. Stephens Hutchcraft, Jr.                        Common Stock--1,000 shares         *
      John T. La Duc                                   Common Stock--181,763 shares         *

      Ezra G. Levin                                          Common Stock--0 shares        --
      Robert Marcus                                      Common Stock--3,500 shares         *
      Anthony R. Pierno                                    Common Stock--500 shares         *
      Paul D. Rusen                                          Common Stock--0 shares        --
      All directors and executive officers
      of the Company as a group
      (19 persons)                                     Common Stock--559,008 shares         * 


     <FN>

     ---------------

     *    Less than 1%.
     (1)  Except as may otherwise be indicated, the beneficial owners have
          sole voting and investment power with respect to the shares listed
          in the table.
     (2)  The address of MAXXAM is 5847 San Felipe, Suite 2600, Houston, Texas 
          77057.
     (3)  Mr. Hurwitz may be deemed to hold beneficial ownership in the
          Company as a result of his beneficial ownership in MAXXAM.

     </TABLE>


     OWNERSHIP OF CERTAIN PARENTS OF THE COMPANY

               As of March 31, 1994, MAXXAM owned approximately 60% of the
     issued and outstanding capital stock in the Company on a fully diluted
     basis.  The following table sets forth, as of March 31, 1994, the
     beneficial ownership of the Common Stock and Class A $.05 Non-Cumulative
     Participating Convertible Preferred Stock ("Class A Preferred Stock") of
     MAXXAM by the directors and nominees for director of the Company, and by
     the Company's directors and executive officers as a group: 


     
<TABLE>

     <CAPTION>
                                                                                     Percent of
                                                                                      Combined
               Name of                   Amount and Nature of            Percent       Voting
          Beneficial Owner             Beneficial Ownership (1)          of Class     Power (2)
       -----------------------   -----------------------------------    ----------   -----------
      <S>                       <C>                                    <C>          <C>
      Charles E. Hurwitz        Common Stock--2,746,642(3)(4)                31.3%
                                Class A Preferred Stock--                                  59.9%
                                     657,917(3)(4)                           97.0%
      Ezra G. Levin             Common Stock--1,000(3)(5)                     *             *

      All directors and
      executive officers of     Common Stock--2,768,228                      31.6%
      the Company as a group    Class A Preferred Stock--                                  60.1%
      (19 persons)                   657,917                                 97.0% 

     <FN>
     ------------------------

     *    Less than 1%.
     (1)  Except as may otherwise be indicated, beneficial owners have sole
          voting and investment power with respect to the shares listed in the
          table.
     (2)  MAXXAM's Class A preferred stock is generally entitled to ten votes
          per share on matters presented to a vote of that company's
          stockholders.
     (3)  Messrs. Hurwitz and Levin serve as trustees of Federated, and Mr.
          Hurwitz, together with members of his immediate family and trusts
          for the benefit thereof, owns all of the shares of beneficial
          interest in Federated.  In addition, Federated, Messrs. Hurwitz and
          Levin, and Mr. James H. Paulin, Jr., Secretary and Treasurer of
          Federated, may be deemed a "group" (the "Stockholder Group") within
          the meaning of Section 13(d) of the Securities Exchange Act of 1934,
          as amended.  As of March 15, 1994, in the aggregate, the Stockholder
          Group beneficially owned 2,747,994 shares of MAXXAM's common stock
          and 658,050 shares of MAXXAM's Class A preferred stock, aggregating
          approximately 59.9% of the total voting power of MAXXAM.  By reason
          of the foregoing and their relationship with the members of the
          Stockholder Group, Messrs. Hurwitz and Levin may be deemed to
          possess shared voting and investment power with respect to the
          shares held by the Stockholder Group.
     (4)  Includes as of March 15, 1994 (a) 1,669,451 shares of MAXXAM's
          common stock and 656,853 shares of MAXXAM's Class A preferred stock,
          respectively, owned by Federated as to which Mr. Hurwitz possesses
          voting and investment power, (b) 1,526 shares of MAXXAM's common
          stock owned by Mr. Hurwitz's spouse as separate property (c) 46,500
          shares of MAXXAM's common stock owned by a limited partnership
          controlled by Mr. Hurwitz and his spouse, 23,250 of which shares
          were separately owned by Mr. Hurwitz's spouse prior to their
          transfer to such limited partnership and as to which Mr. Hurwitz
          disclaims beneficial ownership, and (d) 158,564 shares of MAXXAM's
          common stock owned by 1992 Hurwitz Investment Partnership, L.P., of
          which 79,282 shares are owned by Mr. Hurwitz's spouse as separate
          property and (e) 71,175 shares of MAXXAM's common stock that
          Federated could receive from exercisable options which Mr. Hurwitz
          and Federated may both be deemed to beneficially own.
     (5)  Does not include shares owned by other members of the Stockholder
          Group.

     </TABLE>


               At March 15, 1994, 28,000,000 shares of the Company's Common
     Stock owned by MAXXAM were pledged as security for two MGI debt issues
     consisting of $100.0 million aggregate principal amount of 11 1/4% Senior
     Secured Notes due 2003 and $126.7 million aggregate principal amount of
     12 1/4% Senior Secured Discount Notes due 2003.
 

                               EXECUTIVE COMPENSATION

     SUMMARY COMPENSATION TABLE

               The following table sets forth compensation information, cash
     and non-cash, for each of the Company's last three completed fiscal years
     with respect to the Chief Executive Officer and the four most highly 
     compensated executive officers of the Company (collectively referred to
     as the "named executive officers") for the fiscal year ended December 31,
     1993: 


     
<TABLE>

     <CAPTION>
                                                                                  Long-Term Compensation
                                                                          --------------------------------------
                                          Annual Compensation                     Awards              Payouts
                                 -------------------------------------    -----------------------   ------------
              (a)          (b)       (c)           (d)          (e)          (f)          (g)           (h)             (i)
                                                               Other      Restricted
                                                              Annual        Stock       Options/        LTIP         All Other
           Name and                 Salary        Bonus    Compensation    Award(s)       SARs        Payouts       Compensation
      Principal Position   Year      ($)           ($)       ($)(1)(2)       ($)          (#)           ($)            ($)(1)
       -----------------   ---   ------------  ----------   -----------  -----------   ----------   ------------   --------------
      <S>                 <C>   <C>            <C>         <C>           <C>          <C>          <C>            <C>
      A. Stephens          1993  $505,385(3)      $-0-     $    -0-           -0-          -0-         $18,874    $3,087,201(6)(7)
      Hutchcraft, Jr.,     1992   400,000          -0-          -0-           -0-          -0-       1,376,874(4)     11,423(7)
      former Chairman
      and Chief            1991   365,000       73,000          --            -0-          -0-       3,832,437(5)         --
      Executive Officer

      George T.            1993   291,072          -0-          -0-           -0-      100,000             -0-        40,443(8)
      Haymaker, Jr.,       1992        --           --          --             --           --              --            --
      former President
      and Chief            1991        --           --          --             --           --              --            --
      Operating Officer

      Anthony R. Pierno,   1993   321,232      290,000(10)      -0-           -0-          -0-             -0-        57,179(11)
      Vice President and   1992   302,275      265,000(10)      -0-           -0-          -0-             -0-        50,123(11)
      General Counsel(9)   1991        --           --          --             --           --              --            --

      John T. La Duc,      1993   240,000       25,000(12)      -0-           -0-(13)      -0-             -0-         4,872(7)
      Vice President and   1992   225,000       45,000          -0-     1,428,967(14)   10,000(15)     192,698(4)      8,469(7)(8)
      Chief Financial      1991   195,000       53,500          --            -0-          -0-       1,000,000(5)         --
      Officer

      Joseph A. Bonn,      1993   216,300          -0-          -0-           -0-(13)      -0-             -0-         4,326(7)
      Vice President,      1992   210,000       42,000          -0-     1,428,967(14)      -0-         195,697(4)     96,248(7)(8)
      Planning and         1991   197,500       47,000          --            -0-          -0-       1,000,000(5)         --
      Administration 

     <FN>
     -------------------
      
     (1)  Pursuant to the transition rules effective October 21, 1992, these
          amounts are excluded for the Company's 1991 fiscal year.
     (2)  Excludes perquisites and other personal benefits because the
          aggregate amount of such compensation is the lesser of either
          $50,000 or 10% of the total of annual salary and bonus reported for
          the named executive officer.
     (3)  Includes payment of $55,385 representing accrued vacation not taken
          upon his resignation on December 31, 1993.
     (4)  In December 1992, in connection with the subsequent stockholder
          approval of the Kaiser 1993 Omnibus Stock Incentive Plan (the
          "Plan"), participants in the Company's and KACC's long-term
          incentive plan, as amended (the "LTIP") elected to receive payment
          of their LTIP account balances as of December 31, 1992 as follows:
          (i) Amounts earned and vested were paid half in cash and half in
                      _________________
          restricted shares of the Company's Common Stock.  The portion
          payable in restricted shares of the Company's Common Stock was
          divided by the average of the December 1992 closing prices of $8.539
          per share (December 1 through 28, 1992) to determine the number of
          shares granted.  The portion payable in cash was reduced by 1992
          bonuses paid to recipients and by appropriate tax withholdings. 
          (ii) Amounts earned and unvested were paid in options or shares of                        ___________________
          restricted stock under the Plan during 1993.  Restrictions will be
          removed or options will vest at the rate of 25% each December for
          four (4) years, which began December 1993.  (iii) Amounts unearned                                                        
          and unvested were paid in options or shares of restricted stock           ____________
          under the Plan during 1993.  Restrictions will be removed or options
          will vest as to 50% thereof in each of December 1995 and December
          1996.  The payments made in accordance with item (i) above were
          separate and apart from the Plan and are reflected in column (h) of
          the Summary Compensation Table for 1992.  The grants made in
          accordance with items (ii) and (iii) are reflected in column (f) for
          1992.  Without such elections and subject to certain reductions and
          limitations, participants were generally entitled to receive the
          vested portion of their LTIP account balances on the earlier to
          occur of (a) termination of their employment, (b) termination of the
          LTIP if prior to December 31, 1996, or (c) April 10, 1997.  
     (5)  Pursuant to 1991 amendments, LTIP participants were permitted to
          elect an accelerated payment option pursuant to which they could
          receive in December 1991 and April 1992 amounts approximating 95%
          and 5%, respectively, of the vested portion of their LTIP account
          balances (excluding bonuses previously paid), subject to certain
          maximum dollar limitations.  Without such accelerated payment option
          and subject to certain reductions and limitations, participants were
          generally entitled to receive the vested portion of their LTIP
          account balances on the earlier to occur of (a) termination of their
          employment, (b) termination of the LTIP if prior to December 31,
          1993, or (c) April 10, 1994.
     (6)  Includes payments of $1,086,328 and $1,890,765 upon Mr. Hutchcraft's
          retirement under the Kaiser Retirement Plan and the Kaiser
          Supplemental Benefits Plan, respectively.  See, "Executive
          Compensation--Pension Plan Table."  Also includes $100,000 paid upon
          his retirement.  See, "--Employment Contracts...."
     (7)  Includes $10,108 and $8,000, $4,800 and $4,500, and $4,326 and
          $4,200 under the Kaiser Savings Plan (as defined below) for 1993 and
          1992, respectively, to Messrs. Hutchcraft, La Duc and Bonn,
          respectively.  Also includes $3,423 credited in 1992 to Mr.
          Hutchcraft under the Kaiser Supplemental Benefits Plan described 
          below.  Includes $15,364 loan forgiveness granted to Mr. Bonn in
          March 1992.
     (8)  Includes moving related items of $40,443, $3,969 and $76,684 for
          Messrs. Haymaker, La Duc and Bonn, respectively.
     (9)  Mr. Pierno receives his compensation from MAXXAM; however the
          Company reimburses MAXXAM for certain allocable costs associated
          with the performance of services for the Company by such executive
          officer.  The table reflects such officer's total compensation,
          rather than any allocated part of such compensation.  Mr. Pierno's
          compensation for 1991 is not included since he was not an executive
          officer of the Company at any time during such year.
     (10) Pursuant to Mr. Pierno's employment agreement, his personal loans
          from MAXXAM outstanding on the date of such agreement are forgiven
          at the rate of $15,000 per year.  This amount is included as part of
          his bonus compensation.  See, "Certain Transactions" for discussion
          on such personal loans.
     (11) Represent matching contributions by MAXXAM during 1993 and 1992,
          respectively, under the MAXXAM 401(k) savings plan of $8,994 and
          $4,782, and $48,185 and $45,341 accrued during 1993 and 1992,
          respectively, in respect of MAXXAM's revised capital accumulation
          plan pursuant to which, in general, benefits vesting 10% annually
          are payable upon termination of employment with MAXXAM.
     (12) Represents bonus paid by MAXXAM.
     (13) As of December 31, 1993, Messrs. Bonn and La Duc each owned 131,110
          shares of restricted Common Stock of the Company valued at
          approximately $1,179,990 based on the closing price of $9.00 per
          share.  Restrictions on such shares will be lifted on each December
          2, 1994, 1995 and 1996 as to shares totaling 36,237, 47,436 and
          47,437, respectively, for each of Mr. Bonn and Mr. La Duc.  No
          dividends will be paid to Messrs. Bonn and La Duc during the periods
          of restriction.  No other named executive officer held restricted
          stock of the Company at fiscal year end 1993.
     (14) Includes payout during 1993 of $5,934 of shares of the Company's
          Common Stock issued in April 1993 as 5% of 1992 distribution, $699
          in cash paid in April 1993 for fractional shares and balance of 1992
          LTIP account pursuant to December 1992 election as described in
          footnote (4) above, and $332,918 of shares of the Company's Common
          Stock issued in November and December 1993 as to which restrictions
          were lifted.
     (15) Represents stock appreciation rights Mr. La Duc received from MAXXAM
          with respect to MAXXAM's common stock.  

     </TABLE>


     OPTION/SAR GRANTS TABLE

               The following table sets forth certain information concerning
     options to purchase Common Stock granted in fiscal year 1993 to any of
     the named executive officers, of which there was only one: 

     
<TABLE>

     <CAPTION>
                                                                                                                        Grant 
                                                   Individual Grants                                                  Date Value
      -----------------------------------------------------------------------------------------------------------  -----------------
                    (a)                       (b)                (c)                (d)                (e)                (f)
                                                              % of Total
                                             Number            Options/
                                         of Securities           SARS                                                    Grant
                                           Underlying         Granted to        Exercise or                              Date
                                          Options/SARs      Employees in         Base Price        Expiration           Present
                    Name                   Grants (#)          1993(1)           ($/Share)            Date            Value $ (1)
      -------------------------------  -----------------  -----------------  -----------------  -----------------  -----------------

     <S>                               <C>                <C>               <C>                <C>                <C>
     George T. Haymaker, Jr.                   100,000             15%                  $7.25      05/18/2003          $   412,000 


     <FN>

     ---------------
      
     (1)  Valuation utilizing Black-Scholes Option Price Model using the
          following assumptions:  5-year monthly volatility since July 1991,
          5.92% risk-free rate (10-year Government Bond), no dividend yield
          and 10-year exercise or expiration date.  No adjustments were made
          for non-transferability or risk of forfeiture.

     </TABLE>


               Mr. Haymaker's options set forth in the tables above and below
     were granted under the Kaiser 1993 Omnibus Stock Incentive Plan upon such
     plan being approved by the Company's stockholders in May 1993.  The
     options to purchase shares of the Company's Common Stock vest 20% on the
     anniversary date of the grant and an additional 20% on each anniversary
     date thereafter until fully vested.

     OPTION/SAR EXERCISES AND FISCAL YEAR END VALUE TABLE

               The table below provides information on an aggregated basis
     concerning each exercise of stock options (or tandem SARs) and
     freestanding SARs during the fiscal year ended December 31, 1993 by each
     of the named executive officers, of which there were none, and the 1993
     fiscal year-end value of unexercised options and SARs. 


     
<TABLE>

     <CAPTION>
                  (a)                     (b)              (c)                     (d)                              (e)
                                                                          Number of Unexercised             Value of Undercised
                                                                               Options/SARs              in-the-Money Options/SARs
                                                                             at Year End (#)             at Fiscal Year-End ($) (2)
                                                                     -------------------------------  ------------------------------
                                    Shares Acquired
                                           on            Value 
                  Name              Exercise (#) (1)  Realized ($)     Exercisable     Unexercisable    Exercisable    Unexercisable
      ----------------------------  ---------------  --------------   --------------  --------------  --------------   -------------
     <S>                           <C>               <C>             <C>             <C>              <C>             <C>
     George T. Haymaker, Jr.               --              --                  -0-         100,000    $-0-(2)         $175,000(2)
     John T. La Duc                        --              --                2,000           8,000    17,750(3)       71,000(3)
     Anthony R. Pierno                     --              --               26,000           7,000    53,250(3)       17,750(3) 

    <FN>
     -----------------

     (1)  If no shares received, the number reflected, if any, represents the
          number of securities with respect to which options/SARs were
          exercised.
     (2)  Valued at $9.00, the closing price of the Company's Common Stock on
          the New York Stock Exchange on December 31, 1993, less exercise
          price.  
     (3)  Valued at $36.875, the closing price of MAXXAM's common stock on the
          American Stock Exchange on December 31, 1993, less exercise price.  

     </TABLE>


               The SARs set forth in the above table for Messrs. La Duc and
     Pierno were granted under MAXXAM's 1984 Phantom Share Plan.  The SARs are
     exercisable for cash, MAXXAM common stock or a combination thereof at the
     discretion of MAXXAM's Board of Directors, and vest with respect to 20%
     on the anniversary date of the grant and an additional 20% on each
     anniversary date thereafter until fully vested.

     PENSION PLAN TABLE

               KACC maintains a qualified, defined-benefit Retirement Plan
     (the "Kaiser Retirement Plan") for salaried employees of KACC and co-
     sponsoring subsidiaries who meet certain eligibility requirements.  The
     table below shows estimated annual retirement benefits payable under the
     terms of the Kaiser Retirement Plan to participants with the indicated
     years of credited service.  These benefits are reflected without
     reduction for the limitations imposed by the Internal Revenue Code of
     1986, as amended (the "Code") on qualified plans and before adjustment
     for the Social Security offset, thereby reflecting aggregate benefits to
     be received under the Kaiser Retirement Plan and the Kaiser Supplemental
     Benefits Plan (as defined below). 

     
<TABLE>

     <CAPTION>
                                               Years of Service
          Annual           -------------------------------------------------------
       Remuneration        15            20           25            30           35
       ------------    ----------    ---------    ----------    ---------    ---------
      <S>             <C>           <C>          <C>           <C>          <C>
          $125,000       $28,125      $37,500       $46,875      $56,250      $65,625
           150,000        33,750       45,000        56,250       67,500       78,750
           175,000        39,375       52,500        65,625       78,750       91,875
           200,000        45,000       60,000        75,000       90,000      105,000
           225,000        50,625       67,500        84,375      101,250      118,125
           250,000        56,250       75,000        93,750      112,500      131,250
           300,000        67,500       90,000       112,500      135,000      157,500
           400,000        90,000      120,000       150,000      180,000      210,000
           450,000       101,250      135,000       168,750      202,500      236,250
           500,000       112,500      150,000       187,500      225,000      262,500
           600,000       135,000      180,000       225,000      270,000      315,000
           720,000       162,000      216,000       270,000      324,000      378,000

     </TABLE>
 

     The estimated annual retirement benefits shown are based upon the
     assumptions that current Kaiser Retirement Plan provisions remain in
     effect, that the participant retires at age 65, and that the retiree
     receives payments based on a straight life annuity for his lifetime. 
     Messrs. Hutchcraft, La Duc and Bonn had 37.8, 24.3 and 26.5 years of
     credited service, respectively, on December 31, 1993.  Monthly retirement
     benefits, except for certain minimum benefits, are determined by
     multiplying years of credited service (not in excess of 40) by the
     difference between 1.50% of average monthly compensation for the highest
     base period (of 36, 48 or 60 consecutive months, depending upon
     compensation level) in the last 10 years of employment and 1.25% of
     monthly primary Social Security benefits.  

               The compensation covered by the Kaiser Retirement Plan includes
     base salary and bonus payments.  Mr. Hutchcraft had compensation covered
     by the Kaiser Retirement Plan in 1993 of $450,000, which differed by more
     than 10% from that set forth in the Summary Compensation Table (column
     (c) plus column (d) thereof).  Mr. Hutchcraft's accrued vacation pay for
     1993 did not qualify as compensation for purposes of the Kaiser
     Retirement Plan.

               Participants are entitled to retire and receive pension
     benefits, unreduced for age, upon reaching age 62 or after 30 years of
     credited service.  Full early pension benefits (without adjustment for
     Social Security offset prior to age 62) are payable to participants who
     are at least 55 years of age and have completed 10 or more years of
     pension service (or whose age and years of pension service total 70) and
     who have been terminated by KACC or an affiliate for reasons of job
     elimination or partial disability.  Participants electing to retire prior
     to age 62 who are at least 55 years of age and have completed 10 or more
     years of pension service (or whose age and years of pension service total
     at least 70) may receive pension benefits, unreduced for age, payable at
     age 62 or reduced benefits payable earlier.  Participants who terminate
     their employment after five years or more of pension service, or after
     age 55 but prior to age 62, are entitled to pension benefits, unreduced
     for age, commencing at age 62 or actuarially reduced benefits payable
     earlier.  For participants with five or more years of pension service or
     who have reached age 55 and who die, the Kaiser Retirement Plan provides
     a pension to their eligible surviving spouses.  Upon retirement,
     participants may elect among several payment alternatives including, for
     most types of retirement, a lump-sum payment. Mr. Hutchcraft elected to
     receive such lump-sum payment in the amount of $1,086,328 upon his
     retirement as reflected in column (i) of the Summary Compensation Table.

          All executive officers who are also employees and other regular
     employees of MAXXAM automatically participate in the MAXXAM Pension Plan
     (the "Pension Plan"), a noncontributory, funded plan.  Benefits equal the
     sum of an employee's "past service benefit" and "future service benefit." 
     Benefits are based on an employee's base salary or wages, plus overtime
     (excluding bonuses, commissions, incentive compensation and all other
     extra compensation).

               Under the Pension Plan, the annual past service benefit is the
     greatest of

               (i)  benefits accrued under the plan through December 31, 1986,

               (ii) the product of (a) the sum of 0.8% of the participant's
                    Past Service Compensation Base (as defined), plus 0.8% of 
                    his Past Service Compensation Base in excess of $15,000
                    multiplied by (b) his credited years of service prior to
                    January 1, 1987, or

               (iii)     the product of 1.2% of his Past Service Compensation
                         Base multiplied by his credited years of service
                         prior to January 1, 1987.

               For 1987 and 1988, the annual future service benefit equaled
     1.6% of an employee's compensation up to two thirds of the Social
     Security wage base, plus 2.4% of any remaining compensation.  Effective
     January 1, 1989, the annual future service benefit equals 1.75% of an
     employee's compensation for each year of participation, plus 0.6% of the
     employee's compensation in excess of $10,000.

               The amount of an employee's aggregate compensation that may be
     included in benefit computations under the Pension Plan is limited to
     $235,840 for 1993.  This amount is reduced to $150,000 beginning in 1994. 
     Benefits are generally payable as a lifetime annuity or, with respect to
     married employees, as a 50% joint and survivor annuity, or, if the
     employee elects (with spousal consent), in certain alternative annuity
     forms.  Benefits under the Pension Plan are not subject to any deductions
     for Social Security or other offsets.  The covered compensation for 1993
     and credited years of service as of December 31, 1993 for the Pension
     Plan and estimated annual benefits payable upon retirement at normal
     retirement age for the named executive officers (other than those
     compensated by KACC who do not participate in the Pension Plan), of which
     there was only one, were as follows:  Mr. Pierno:  $235,840--4 years--
     $35,783.

               The projected benefits shown above were computed as lifetime
     annuity amounts, payable beginning at age 65.  The benefit amounts
     reflect a covered compensation limit of $150,000 for 1994 and subsequent
     years under Section 401(a)(17) of the Code.  In addition, the amounts
     reflect a maximum benefit limit of $118,800 for 1994 and subsequent years
     (with early retirement reductions where applicable) that is placed upon
     annual benefits that may be paid to a participant in the Pension Plan at
     retirement under Section 415 of the Code.  Combined plan limits
     applicable to employees participating in both defined contribution and
     defined benefit plans have not been reflected.

               Kaiser Supplemental Benefits Plan

               KACC maintains an unfunded, non-qualified Supplemental Benefits
     Plan (the "Kaiser Supplemental Benefits Plan"), the purpose of which is
     to restore benefits which would otherwise be paid from the Kaiser
     Retirement Plan or the Supplemental Savings and Retirement Plan, a
     qualified Section 401(k) plan (the "Kaiser Savings Plan"), were it not
     for the limitations imposed by the Code.  Participation in the Kaiser
     Supplemental Benefits Plan includes all employees of KACC and its
     subsidiaries whose benefits under the Kaiser Retirement Plan and Kaiser
     Savings Plan are likely to exceed the maximum dollar limitations imposed
     by the Code.  Eligible participants are entitled to receive the
     equivalent of the Kaiser Retirement Plan and Kaiser Savings Plan benefits
     which they may be prevented from receiving under those plans because of
     Code limitations.  Mr. Hutchcraft received a benefit payment in the
     amount of $1,890,765 upon retirement under the Kaiser Supplemental
     Benefits Plan, as reflected in column (i) of the Summary Compensation
     Table. 

              Kaiser Termination Payment and Benefits Continuation Policy

               Most full-time salaried employees of KACC are eligible for
     benefits under an unfunded termination policy if their employment is
     involuntarily terminated, subject to a number of exclusions.  The policy
     provides for lump sum payments after termination ranging from one-half
     month's salary for less than one year of service graduating to eight
     months' salary for 30 or more years of service.  The amounts payable to
     Messrs. La Duc and Bonn under the policy if they had been involuntarily
     terminated on December 31, 1993 would have been $120,000 and $126,175,
     respectively.

               MAXXAM Supplemental Executive Retirement Plan

               Effective March 8, 1991, MAXXAM adopted an unfunded
     non qualified Supplemental Executive Retirement Plan (the "SERP").  The
     SERP provides that participants are entitled to receive benefits which
     would have been payable to such participants under the Pension Plan
     except for the limitations imposed by the Code.  Participants in such
     plan are selected by MAXXAM's Board of Directors or are entitled to
     participate by virtue of provisions in their employment agreements.  Only
     one executive officer of the Company, Mr. Pierno, was entitled to receive
     benefits under the SERP during 1993.

               The following projections for Mr. Pierno are based on the same
     assumptions as utilized in connection with the Pension Plan projections
     above.  The 1994 qualified plan pay limit ($150,000) and benefit limit
     ($118,800) are reflected for all years in the future.  In addition, no
     future increases in the participant's covered compensation amount from
     the 1993 levels are assumed. 


     
<TABLE>

     <CAPTION>

             COVERED COMPENSATION FOR 1993:
             <S>                             <C>
                       Qualified Plan        $  235,840
                       Nonqualified Plan         85,392
                                                 ------
                            Total            $  321,232
                                                =======
             CREDITED YEARS OF SERVICE AS OF          4
             DECEMBER 31, 1993

             PROJECTED NORMAL RETIREMENT
             BENEFIT:
                       Qualified Plan        $   35,873
                       Nonqualified Plan         18,778
                                                 ------
                            Total            $   54,561
                                                 ======

     </TABLE>
 

     EMPLOYMENT CONTRACTS AND TERMINATION OF EMPLOYMENT AND CHANGE-IN-CONTROL
     ARRANGEMENTS

               Pursuant to an employment agreement dated October 1, 1992, A.
     Stephens Hutchcraft, Jr. held the position of President of the Company
     and KACC, and from January 1, 1993 through December 31, 1993, Mr.
     Hutchcraft also became the Chairman and Chief Executive Officer of the
     Company and KACC.  Mr. Hutchcraft's agreement provided for a 1993 base
     salary of $450,000 and for termination of his participation in the LTIP
     as of December 31, 1992, with payment of his estimated account balance
     thereunder on December 31, 1992 with any adjustment from estimated to
     actual balance determined after preparation of audited financial
     statements for 1992, to be made on or about April 10, 1993.  Pursuant to
     this agreement, Mr. Hutchcraft was paid $1,358,000 on December 31, 1992
     and $18,874 on April 8, 1993 on account of his LTIP account balance. 
     Also, Mr. Hutchcraft was paid $100,000 upon his retirement under Section
     4.5 of his employment agreement, which provided for additional retirement
     benefits based on a formula, subject to a $100,000 maximum.  Prior to the
     time of his election as Chairman of the Board and Chief Executive Officer
     of the Company and KACC, Mr. Hutchcraft served as Chief Operating Officer
     in addition to President of the Company and KACC and his compensation was
     established pursuant to the base salary program and bonus plan for
     executives and managers of the Company generally, as described below, and
     based on certain performance factors.  See "Compensation Committee Report
     on Executive Compensation."  The compensation set forth in Mr.
     Hutchcraft's agreement was also established in recognition of his
     previous compensation history, in anticipation of his new additional
     responsibilities as Chairman of the Board, his personal leadership
     qualities and industry expertise widely recognized in the Company and in
     the aluminum industry, and also as an incentive to Mr. Hutchcraft to
     continue in the employ of the Company.  Upon his retirement as of
     December 31, 1993, Mr. Hutchcraft received payments under the Kaiser
     Retirement Plan and the Kaiser Supplemental Benefits Plan, as reflected
     in column (i) of the Summary Compensation Table.

               On April 1, 1993, the Company entered into an employment
     agreement with Mr. George T. Haymaker, Jr. pursuant to which Mr. Haymaker
     joined the Company in May 1993 as President and Chief Operating Officer
     until he was named Chairman and Chief Executive Officer of the Company
     effective January 1, 1994 upon Mr. Hutchcraft's retirement.  Mr.
     Haymaker's agreement has a term of five (5) years, provides for a base
     salary of $450,000 per annum and a bonus target of 50% of his salary
     beginning fiscal year 1994.  Mr. Haymaker was not paid a bonus for
     calendar 1993 pursuant to the terms of the agreement. Any bonus actually
     awarded for 1994 or thereafter could be less or greater than the target
     level, depending upon corporate performance as compared to corporate plan
     objectives, as well as individual performance.  Pursuant to Mr.
     Haymaker's agreement, he received an initial award under the Plan upon
     its approval by stockholders of options to purchase up to 100,000 shares
     of Common Stock at its fair market value on the date of the award.  Such
     options vest 20% per year for a period of five (5) years and are
     reflected in the Summary Compensation Table.  

               In the event of a change of control of the Company or KACC
     which within one year thereafter adversely affects Mr. Haymaker's title,
     position, duties, responsibilities or compensation, Mr. Haymaker's
     employment agreement provides that he may elect to be deemed terminated
     without cause, and therefore, entitled to a severance payment in an 
     amount equal to two times his base annual salary reduced by any payment
     made as discussed under "Pension Plan Table--Kaiser Termination Payment
     and Benefits Continuation Policy" above.  Additionally, in the event of
     such termination, Mr. Haymaker's options for 100,000 shares of Common
     Stock shall fully vest.

               Mr. Haymaker's employment agreement further provides that he
     vests 20% per year in an unfunded non-qualified supplemental benefit,
     payable at retirement after age 62, equal to a benefit determined as if
     his Kaiser Retirement Plan pension were based on his aggregate service
     with KACC and a prior employer (25 years), less his pension from that
     prior employer and any retirements from KACC.  

               Mr. Pierno and MAXXAM entered into a five-year employment
     agreement effective as of March 8, 1990.  Pursuant to the terms of the
     agreement, Mr. Pierno was entitled during 1993 to a base salary of
     $321,232 per year, which amount is increased annually by an amount not
     less than the increase in the Consumer Price Index for that year.  The
     agreement provided for a bonus for the year 1992 in an amount not less
     than 75% and not more than 125% of Mr. Pierno's then base salary. 
     Although the agreement specifies no bonus percentage for the years 1993
     and 1994, a bonus as reflected in the Summary Compensation Table was paid
     during 1993, and in the employment agreement MAXXAM expresses an intent
     to pay a bonus during 1994 in the same percentage range.  The agreement
     also entitles Mr. Pierno to participate in employee benefit plans and
     programs applicable to senior executives of MAXXAM.  

               Mr. La Duc held the positions of Vice President and Chief
     Financial Officer of the Company and KACC and Senior Vice President and
     Chief Financial Officer of MAXXAM pursuant to an employment agreement
     among MAXXAM, KACC and Mr. La Duc, which commenced September 26, 1990,
     and expired December 31, 1993.  The employment agreement provided for an
     initial base salary of $190,000, with any increases at the discretion of
     KACC and MAXXAM.  Currently, Mr. La Duc continues in his employment in
     such positions with the Company, KACC and MAXXAM.  Subject to limitations
     pursuant to the LTIP, an annual bonus may be paid under the terms of the
     KACC bonus plan.  Mr. La Duc is eligible to participate in the employee
     benefit plans and programs maintained by KACC, as from time to time in
     effect, applicable to senior executives of KACC, including, but not
     limited to, the Plan.  

               KACC and MAXXAM entered into an employment agreement with Mr.
     Joseph A. Bonn, Vice President, Planning and Administration of the
     Company and KACC.  The employment agreement has a term of three years
     ending June 30, 1994, and provides for an initial base salary of
     $210,000, which has and may increase at the discretion of KACC and
     MAXXAM.  Subject to limitations pursuant to the LTIP, an annual bonus may
     be paid under the terms of the KACC bonus plan.  Mr. Bonn is eligible to
     participate in the employee benefit plans and programs maintained by
     KACC, as from time to time in effect, applicable to senior executives of
     KACC, including, but not limited to, the Plan. 


 
                          COMPENSATION COMMITTEE REPORT
                                         ON

                               EXECUTIVE COMPENSATION

               The members, the names of whom this report appears over, served
     on the Company's Compensation Committee during all of 1993.  The
     Company's principal subsidiary, Kaiser Aluminum & Chemical Corporation
     ("KACC"), has the same members on its Committee.  Although certain plans
     or programs in which executive officers of the Company participate are
     jointly sponsored by the Company and KACC, executive officers of the
     Company are directly employed and compensated by KACC.  References to the
     "Company" made in the remainder of this report of the Committee are
     deemed to include KACC as well as the Company.  The Committee reviews and
     approves proposals which cover the initiation, modification or
     termination of benefit plans, salaries or other compensation except where
     such functions are performed by a plan committee, a board of directors of
     a subsidiary of the Company or as covered by collective bargaining
     arrangement or other binding contract.  

               In performing its responsibilities, the Committee frequently
     obtains reports and/or recommendations from management, particularly from
     the Company's President and its Vice President-Planning and
     Administration, and from time to time and on an ad hoc basis, reports,
     studies or recommendations from outside compensation consulting firms. 
     Generally, the Committee holds regular meetings in connection with the
     regular meetings of the board of directors, which are usually four times
     per year, and meets more frequently during the third and fourth quarters
     of the year.  The Committee's actions with respect to salary, bonus and
     other elements of executive compensation are generally effectuated as of
     the first of the calendar year and approved by the Committee as early as
     September and as late as January.  The Company's compensation philosophy
     consists of three key priorities:

                    Cash flow and profit enhancement - Compensation
          programs are designed to support the primary corporate
          objective of long-term cash flow and profit generation.  Both
          annual and longer term variable compensation programs are
          utilized and designed to emphasize performance measures that
          contribute to long-term cash flow and corporate profits
          generation.

                    Business unit orientation - Sensitivity to various of
          the Company's decentralized business units requires a
          development of operational objectives at major business
          component units.

                    Incentive emphasis - Strong emphasis is placed on
          incentives, so that compensation can, to the degree possible,
          reward an individual's efforts to achieve the short- and long-
          term objectives of the unit or function for which he or she has
          responsibilities.  

     COMPENSATION POLICIES FOR EXECUTIVE OFFICERS

               The Company's compensation of its executive officers is
     administered in an overall program which includes the managers and other
     key employees of its six operating divisions.  Under the direction of the
     Committee, management prepares recommendations for the Committee based,
     generally, on the following methodology: 

                    Comparator Companies - Using a data base, a select
          group of approximately 20 companies is used as a primary
          comparator group.  The group indexes a mix of major customers,
          suppliers, competitors and regionally equivalent comparable
          companies.  Two of the three companies that make up the S&P 500
          Aluminum Industry Index are included in this group.  These
          companies usually range in size from $1 billion to about $13
          billion in assets.  They typically average $4 billion in annual
          revenues.  The data are size-adjusted to allow comparisons to
          the Company based on revenues. 

                    Position Matching - The Company develops a
          description of various key positions and their major
          responsibilities.  These include the scope of the job as
          indicated by unit sales levels, number of employees, production
          levels, reporting level and other relevant factors.  These
          positions are matched to data base descriptions to insure an
          accurate match to reasonably comparable positions at
          comparative companies.

                    Annual Bonus Incentives - The Company maintains a
          bonus plan for officers and managers which was first approved
          by stockholders in 1967.  It was last materially amended in
          1989.  Early in each year, a target bonus award, based on the
          Company's target financial and operating plan for the year, is
          established.  In establishing the target, target bonus levels
          at comparator companies are reviewed, and the target (as a
          percent of base compensation) is established at approximately
          the median of the target bonus levels of comparator companies. 
          Performance above expected levels can result in above average
          bonus payments.  Performance is viewed not only in terms of
          earnings, but also within the context of industry trends,
          possible longer term impacts of objectives achieved, progress
          toward multi-year, general corporate objectives, leadership,
          and performance of both regularly assigned duties and
          extraordinary contributions.  The Committee, pursuant to the
          bonus plan, identifies officers and management personnel of the
          Company who, by their services, ability, diligence and
          ingenuity make direct and important contributions to the
          Company's profits, performance, growth and continued success
          and authorizes bonus awards payable in cash to such persons.  

               The Company's general compensation objectives for executives
     are: (i) to pay base salaries in approximately the 45th to 50th
     percentile of its competitive market, (ii) to utilize bonus awards as
     incentives (iii) to allow extra compensation for above average
     performance and effort, (iv) to provide long-term incentives which will
     result in opportunities for executives and key managers to realize
     personal rewards from good long-term performance, (v) to pay other
     benefits generally in the 50th percentile of its comparative market, and
     (vi) to provide executive perquisites which are at or slightly below its
     competitive market level.  In determining recommendations to the
     Committee for bonus payments to be paid, the Company's Management
     considers certain performance weighing factors.  For example, the Chief
     Executive Officer bonus recommendation is based 75% on corporate
     objectives and performance and 25% on individual performance; corporate
     staff executives' bonus recommendations are based 50% on corporate
     objectives and performance and 50% on individual performance; and
     business unit managers' and heads of major plants' bonus recommendations
     are based 25% on corporate objectives and performance, 25% on individual 
     performance, and 50% on business unit or plant objectives and
     performance.  Elements of corporate performance considered include a
     comparison of production and financial results for a period both with the
     planned production and financial results for the period and with
     production and financial results of competitors within the aluminum
     industry for the period.  Elements of individual performance considered
     include a comparison of an individual's planned objectives in areas such
     as safety, quality, on-time performance, budget, development and
     implementation of strategic plans, and other projects.  Consideration of
     such factors, and giving the relative weight to such factors described
     above, forms the basis for the determination of whether bonuses will be
     paid for a period and of the amount of any such bonuses.  Based
     principally on the determination that the Company's financial 
     performance was lower than its planned financial performance 
     and the performance of its competitors in the aluminum industry 
     for 1993, it was determined that, with one exception, the Company
     or KACC would not pay bonuses in 1993. 
     One bonus was paid to an executive officer (who is not named in the 
     Summary Compensation Table) because a business unit's performance
     exceeded its plan goals.  Two named executive officers received bonuses 
     from MAXXAM.

     DISCRETION OF THE COMMITTEE

               After receiving and considering the recommendations of
     management, the Committee may consider whatever additional or other
     factors it deems to be relevant or appropriate to consider in
     establishing or approving compensation levels for executives.  Among such
     factors may be the cost of living, the establishment of bonus targets as
     a percentage of salary, and related quantitative factors.  The Committee
     is also mindful that the Company is largely involved in the production
     and sales of a commodity for which there is a world-wide market and price
     structure and therefore considers not only absolute performance but
     performance within the context of the world markets and performance of
     competitive companies.  The Committee considers that activities in one
     year may relate to results or growth in another year and that services
     provided in difficult times may be more exacting, in some respects, than
     those provided in years in which markets provide higher prices, stronger
     demand and higher earnings.  The Committee also recognizes that the
     duties of some executive employees may be more directly linked to short-
     term revenues or earnings than others, and that the support provided in
     some functions may enable the efforts of others to be more successful. 
     With respect to compensation levels for 1993, the Committee considered
     the depressed world and domestic aluminum industry conditions, the
     slightly higher performance in general of the Company's competitors
     in the aluminum industry, the Company's performance was lower than 
     its plan, and non-controllable events or conditions such as the world-
     wide glut of supply affecting the aluminum industry as well as 
     the Company's performance and financial results.  After such considera-
     tion, the Committee determined that, in general, 1994 salaries would be
     kept at 1993 levels.  The Committee typically makes its final
     compensation determinations in an "Executive Session" at which time it 
     excludes all non-Committee members which may be affected by the action 
     or decision.  

     STOCK/OPTION PLAN

               During 1993, the board of directors of the Company adopted, and
     the stockholders of the Company approved, the Kaiser 1993 Omnibus Stock
     Incentive Plan (the "Plan").  The Plan is utilized to provide those
     persons who have substantial responsibility for management and growth of
     the Company with an opportunity to increase their ownership of Common
     Stock, stock options or related types of benefits.  The Plan is used as
     the primary long-term incentive program for officers, key employees and
     middle managers of the Company.  Grants were made under the Plan in 1993
     in order to provide long-term retention and performance incentives to the
     recipients of the grants.  The size of the grants was determined based 
     upon surveys of jobs at comparator companies similar to the jobs of the
     recipients, in order to determine the percentage of compensation for such
     jobs that represented long-term incentive compensation.  The value
     calculated by applying the median of such percentages to each recipient's
     base compensation was converted into options for shares of the Company's 
     stock based upon an approximation of the value of such options for the 
     thirty days preceding the grant.

     EMPLOYMENT AGREEMENTS

               From time to time and for various reasons, management and the
     board of directors has deemed it appropriate to enter into specific
     employment agreements with certain executive officers.  Such agreements
     may relate, for example, to the further retention of the officer or a
     commitment by the officer to relocate to another location.  Where such
     agreements are made, they are negotiated by the Company's General
     Counsel, or his designee under the supervision of the Committee and
     reviewed and approved by the board of directors or the Committee.  In
     making its compensation decisions and in negotiating and approving such
     employment contracts, the Committee is mindful of the Company's overall
     corporate objectives and its compensation objectives described above as
     well as the circumstances making the employment agreement an appropriate
     compensation mechanism.  Such employment agreements generally range in
     term from one to five years.  During 1993, Messrs. Hutchcraft, La Duc and
     Bonn were employed under employment agreements as discussed under the
     heading, "Employment Contracts, Termination of Employment and Change-in-
     Control Arrangements." 

     COMPENSATION OF THE CHIEF EXECUTIVE OFFICER FOR THE LAST COMPLETED FISCAL
     YEAR

               A. Stephens Hutchcraft, Jr. served as the Chairman of the Board
     and Chief Executive Officer ("CEO") of the Company until his retirement
     effective December 31, 1993.  Mr. Hutchcraft was employed pursuant to a
     written employment agreement which was entered into as of October 1,
     1992.  His 1993 base salary of $450,000 was established at the time of
     his employment agreement with the Company pursuant to the base salary
     program and bonus plan for executives and managers for the Company
     generally and, in part, on a level of compensation in recognition of his
     previous compensation history, the assumption of additional
     responsibilities as Chairman of the Board, his leadership qualities and
     industry expertise widely recognized in the Company and in the aluminum
     industry, and as an incentive to continue in the employ of the Company. 
     Mr. Hutchcraft received a 12.5% increase in his 1993 annual salary over
     his 1992 salary.  This increase was not based on the Company's 1992
     performance but on the factors previously stated.  Mr. Hutchcraft's LTIP
     payouts in 1991 and 1992 as shown in the Summary Compensation Table
     represent the bulk of his benefit under the Company's LTIP and was paid
     by virtue of participation percentages therein granted to Mr. Hutchcraft
     as a long-term incentive in 1989.  

     COMPLIANCE WITH INTERNAL REVENUE CODE SECTION 162(M)

               Section 162(m) of the Code, enacted in 1993, generally
     disallows a tax deduction to public companies for compensation over $1
     million paid to the Chief Executive Officer and four other most highly
     compensated executive officers of such corporations.  Qualifying
     performance-based compensation will not be subject to the deduction limit
     if certain requirements are met.  No current action on the part of the
     Company has been taken for 1994 in response to such Section 162(m) and 
     the proposed regulations thereunder.  The Company does not expect Section
     162(m) of the Code to have a material impact upon the deductibility of
     compensation paid to its covered executives during 1994.  The Company
     currently intends to structure the performance-based portion of the
     compensation of its executive officers (which currently consists of stock
     option grants and the discretionary annual bonuses described above) in a
     manner that complies with the new statute and proposed regulations (or as
     finalized) thereunder for those executive officers of the Company prior
     to such fiscal year as such officers may become subject to such deduction
     limitation.


                                             Compensation Committee
                                             of the Board of Directors



                                             Ezra G. Levin, Chairman
                                             Robert Marcus

 
    COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION

               No member of the Compensation Committee of the Board of
     Directors of the Company was, during the 1993 fiscal year, an officer or
     employee of the Company or any of its subsidiaries, or was formerly an
     officer of the Company or any of its subsidiaries or, other than Mr.
     Levin, had any relationships requiring disclosure by the Company under

     Item 404 of Regulation S-K.  Mr. Levin served on the Company's
     Compensation Committee and Board during 1993.  Mr. Levin is also a
     partner in the law firm of Kramer, Levin, Naftalis, Nessen, Kamin &
     Frankel, which provided legal services for the Company and its
     subsidiaries during 1993.

               During the Company's 1993 fiscal year, no executive officer of
     the Company served as (i) a member of the compensation committee (or
     other board committee performing equivalent functions) of another entity,
     one of whose executive officers served on the Compensation Committee of
     the Board of Directors, (ii) a director of another entity, one of whose
     executive officers served on the Compensation Committee of the Company,
     or (iii) a member of the compensation committee (or other board committee
     performing equivalent functions) of another entity, one of whose
     executive officers served as a director of the Company. 


                                 PERFORMANCE GRAPH

               The following performance graph compares, on a quarterly basis
     since July 11, 1991, the cumulative total stockholder return on the
     Company's Common Stock with the cumulative total returns of the S&P 500
     Stock Index and a peer group which consists of companies included by S&P
     in its published index for the Aluminum Industry.  The graph assumes that
     the value of the investment in the Company's Common Stock and each index
     was $100 at July 31, 1991 and that all dividends were reinvested.  The
     data points are calculated as of the last trading day for the month
     indicated.  The measurement period for the following graph is less than 5
     years because the Company only became publicly traded on July 11, 1991,
     the date of the commencement of the Company's initial public offering.


<TABLE>

<CAPTION>
                         Base
                        Period
                        July 91  Sep 91  Dec 91  Mar 92  Jun 92  Sep 92  Dec 92  Mar 93  Jun 93  Sep 93  Dec 93

<S>                     <C>      <C>     <C>     <C>     <C>     <C>     <C>     <C>     <C>     <C>     <C>     
Kaiser Aluminum Corp.   100.00    93.71   80.86  105.02   83.40   60.75   66.92   58.19   61.10   55.28   69.82
S&P 500 Index           100.00   100.82  109.27  106.51  108.54  111.96  117.60  122.73  123.33  126.52  129.45
Aluminum                100.00    92.57   93.32   97.17  105.18   90.64   95.53   92.15   96.35   90.83   97.81

</TABLE>



                                CERTAIN TRANSACTIONS

               For periods through June 30, 1993, the Company and its
     subsidiaries (including KACC) were members of an affiliated group of
     corporations (an "Affiliated Group") within the meaning of Section 1504
     of the Code, of which MAXXAM is the common parent corporation (the
     "MAXXAM Tax Group").  Effective July 1, 1993, the Company and its
     subsidiaries are no longer members of the MAXXAM Tax Group (the
     "Deconsolidation") but are members of a new Affiliated Group of which the
     Company is the common parent corporation (the "New Kaiser Tax Group"). 
     The taxable income and loss and tax credits for the Company and its
     subsidiaries for the period January 1, 1993 through June 30, 1993, will
     be included in the 1993 MAXXAM Tax Group consolidated Federal income tax
     return (the "MAXXAM 1993 Tax Return").  For periods beginning on or after
     July 1, 1993 (the "Post Deconsolidation Periods"), the taxable income and
     loss and tax credits for the Company and its subsidiaries will be
     included in the consolidated Federal income tax returns to be filed for
     the New Kaiser Tax Group.

               As a consequence of the Deconsolidation, the KACC Tax
     Allocation Agreement (as defined below) and the Kaiser Tax Allocation
     agreement (as defined below) (collectively, the "Tax Allocation
     Agreements") terminated pursuant to their terms, effective with respect
     to Post Deconsolidation Periods.  The provisions of the Tax Allocation
     Agreements will continue to govern taxable periods ending before the date
     of the Deconsolidation (the "Pre Deconsolidation Periods").  Therefore,
     payments or refunds may still be required by or payable to the Company or
     KACC under the Tax Allocation Agreements for Pre Deconsolidation Periods
     due to the final resolution of audits, amended returns and related
     matters with respect to such Pre Deconsolidation Periods.  However, the
     Company's and KACC's credit agreement dated as of February 15, 1994 (the
     "Credit Agreement") prohibits any payments by KACC to MAXXAM pursuant to
     the KACC Tax Allocation Agreement after February 15, 1994, however,
     MAXXAM may offset amounts owing to it against amounts owed by it under
     the KACC Tax Allocation Agreement, and KACC may make certain payments
     that are required as a result of audits of MAXXAM's tax returns and only
     to the extent of any amounts paid after February 15, 1994 by MAXXAM to
     KACC under the KACC Tax Allocation Agreement.  To the extent the New
     Kaiser Tax Group generates unused tax losses or tax credits in Post
     Deconsolidation Periods, such amounts will not be available to obtain
     refunds of amounts paid by the Company or KACC to MAXXAM for Pre
     Deconsolidation Periods pursuant to the Tax Allocation Agreements.  It is
     anticipated that such losses and credits will be carried forward to
     offset future Federal income taxes payable by the New Kaiser Tax Group.

               Any unused tax attribute carryforwards existing as of the date
     of the Deconsolidation under the terms of the Tax Allocation Agreements
     will be eliminated and will not be available to offset Federal income tax
     liabilities of the New Kaiser Tax Group for Post Deconsolidation Periods. 
     Upon the filing of the MAXXAM 1993 Tax Return, the tax attribute
     carryforwards of the MAXXAM Tax Group as of December 31, 1993 will be
     apportioned in part to the New Kaiser Tax Group, based upon the
     provisions of the relevant consolidated return regulations.  It is
     anticipated that the amounts of such tax attribute carryforwards
     apportioned to the New Kaiser Tax Group will approximate or exceed the
     amounts of tax attribute carryforwards eliminated under the Tax
     Allocation Agreements.  Although the amounts of tax attribute
     carryforwards apportioned to the New Kaiser Tax Group will be determined
     as of December 31, 1993, they will be available as of the date of the
     Deconsolidation, subject to certain limitations, to reduce Federal income 
     taxes payable by the New Kaiser Tax Group for Post Deconsolidation
     Periods.
      
               In 1989, KACC and MAXXAM entered into a tax allocation
     agreement (the "KACC Tax Allocation Agreement").  Pursuant to the terms
     of the KACC Tax Allocation Agreement, MAXXAM pays any consolidated
     Federal income tax liability for the MAXXAM Tax Group.  KACC is liable to
     MAXXAM for the Federal income tax liability of KACC and its subsidiaries
     (collectively, the "KACC Subgroup") computed as if the KACC Subgroup were
     a separate Affiliated Group which was never affiliated with the MAXXAM
     Tax Group (taking into account all limitations under the Code and
     regulations applicable to the KACC Subgroup), except that the KACC
     Subgroup excludes interest income received or accrued on an intercompany
     note issued by the Company in connection with a financing consummated in
     December 1989 (the "KACC Subgroup's Separate Income Tax Liability").  To
     the extent such calculation results in a net operating loss or a net
     capital loss or credit which the KACC Subgroup could have carried back to
     a prior taxable period under the principles of Sections 172 and 1502 of
     the Code, MAXXAM pays to KACC an amount equal to the tax refund to which
     KACC would have been entitled (but not in excess of the aggregate amount
     previously paid by KACC to MAXXAM for the current year and the three
     prior years).  If such separately calculated net operating loss or net
     capital loss or credit of the KACC Subgroup cannot be carried back to a
     prior taxable year of the KACC Subgroup for which the KACC Subgroup paid
     its separate tax liability to MAXXAM, the net operating loss or net
     capital loss or credit becomes a loss or credit carryover of the KACC
     Subgroup to be used in computing the KACC Subgroup's Separate Income Tax
     Liability for future taxable years.  The same principles are applied to
     any consolidated or combined state or local income tax returns filed by
     the MAXXAM Tax Group with respect to KACC and its subsidiaries. 
     Although, under Treasury regulations, all members of the MAXXAM Tax
     Group, including the members of the KACC Subgroup, are severally liable
     for the MAXXAM Tax Group's Federal income tax liability for all of 1993
     and applicable prior periods, under the KACC Tax Allocation Agreement,
     MAXXAM indemnifies each KACC Subgroup member for all Federal income tax
     liabilities relating to taxable years during which such KACC Subgroup
     member was a member of the MAXXAM Tax Group, except for payments required
     under the KACC Tax Allocation Agreement.

               During 1992, under the KACC Tax Allocation Agreement, KACC made
     a payment to MAXXAM of $28.0 million in respect of the year ended
     December 31, 1991.  The eighth amendment dated as of January 7, 1993 (the
     "Eighth Amendment") to the Company's and KACC's former credit agreement
     (the "1989 Credit Agreement") prohibited the payment by KACC to MAXXAM of
     any additional amounts due under the KACC Tax Allocation Agreement until
     December 15, 1994.  Therefore, amounts payable by KACC to MAXXAM with
     respect to the year ended December 31, 1992 have not yet been paid.  KACC
     has recorded tax losses and tax credits for the period January 1, 1993
     through June 30, 1993, and such losses and credits will be carried back
     to prior taxable periods under the terms of the KACC Tax Allocation
     Agreement.  It is estimated that MAXXAM owes KACC approximately $7.0
     million for this period, net of amounts owed by KACC to MAXXAM with
     respect to the year ended December 31, 1992.
      
               In 1991, MAXXAM also entered into a tax allocation agreement
     with the Company (the "Kaiser Tax Allocation Agreement").  Pursuant to
     the terms of the Kaiser Tax Allocation Agreement, the Federal income tax
     liability of the Company and its subsidiaries (collectively, the "Kaiser
     Subgroup") is computed using the same principles used in the KACC Tax
     Allocation Agreement to determine the KACC Subgroup's income tax 
     liability.  To the extent such tax liability ("Kaiser's Separate Income
     Tax Liability") for any applicable period exceeds the KACC Subgroup's
     Separate Income Tax Liability for such period, the Company is obligated
     to pay the amount of such difference to MAXXAM.  To the extent that
     Kaiser's Separate Income Tax Liability for any applicable period is less
     than the KACC Subgroup's Separate Income Tax Liability for such period,
     MAXXAM is obligated to pay the amount of such difference to the Company
     (but not in excess of the aggregate net amount previously paid by the
     Company and KACC to MAXXAM for the current year and the three prior
     years).  The foregoing principles also are applied to any consolidated or
     combined state or local income tax returns filed by the MAXXAM Tax Group
     with respect to the Company.  While the Company is severally liable for
     the MAXXAM Tax Group's Federal income tax liability for all of 1993 and
     applicable prior periods, pursuant to the Kaiser Tax Allocation
     Agreement, MAXXAM indemnifies the Company according to the same
     principles as those applied to KACC Subgroup members under the KACC Tax
     Allocation Agreement.

               During 1992, under the Kaiser Tax Allocation Agreement, MAXXAM
     made a payment to the Company of $45,000 in respect of the year ended
     December 31, 1991.  The Company estimates the amounts due from MAXXAM to
     it in respect of the year ended December 31, 1992 and for the period
     January 1, 1993 through the date of the Deconsolidation to be
     approximately $84,000 and $42,000, respectively.

               Under the current consolidated return regulations, the
     Deconsolidation caused certain tax basis adjustments and the recognition
     of certain types of taxable income (including amounts that were
     previously deferred), none of which the Company believes to be material.

               On June 30, 1993, the Company and KACC entered into a tax
     allocation agreement (the "New Tax Allocation Agreement") effective for
     Post Deconsolidation periods.  The terms of the New Tax Allocation
     Agreement are identical in all material respects to those of the KACC Tax
     Allocation Agreement except that KACC is liable to the Company.

               KACC and MAXXAM have an arrangement pursuant to which they
     reimburse each other for certain allocable costs associated with the
     performance of services by their respective employees, and KACC also pays
     to MAXXAM amounts in respect of directors' fees for directors of KACC who
     are not employees of KACC and who are directors of MAXXAM.  During 1993,
     KACC paid a total of approximately $2.0 million to MAXXAM pursuant to
     such arrangements and MAXXAM paid approximately $0.8 million to KACC
     pursuant to such arrangements.

               As a condition to the effectiveness of the Eighth Amendment, a
     subsidiary of MAXXAM made a loan to KACC on January 14, 1993 in the
     principal amount of $15.0 million evidenced by a promissory note (the
     "MAXXAM Note").  On June 30, 1993, the MAXXAM Note was exchanged for
     2,132,950 Depositary Shares of the Company.  The Company made a capital
     contribution of the MAXXAM Note to KACC, which resulted in the
     extinguishment of the MAXXAM Note.  

               The Company did not declare any dividends on Common Stock
     during 1993.  

               On December 15, 1992, KACC issued a note (the "PIK Note") to a
     subsidiary of MAXXAM in the principal amount of $2.5 million,
     representing the entire amount of a dividend received by such subsidiary
     in respect of the shares of the Company's Common Stock which it owned.  
     The PIK Note bears interest, compounded semiannually, at a rate equal to
     12% per annum, and is due and payable, together with accrued interest
     thereon, on June 30, 1995.  KACC is not required to make any payment of
     principal of or interest on the PIK Note prior to June 30, 1995. 
     However, to the extent not prohibited by the Credit Agreement, KACC may
     be required to prepay the PIK Note upon demand.  The Credit Agreement
     currently prohibits the payment of principal and interest on the PIK Note
     except at the maturity thereof.  

               In January 1994, MAXXAM entered into a commercial guaranty of
     payment (the "Guaranty") of a promissory note dated January 28, 1994, in
     the original principal amount of $150,000 from Mr. Anthony R. Pierno,
     Vice President and General Counsel of the Company, to Charter National
     Bank--Houston.  The Guaranty is subject to an agreement between MAXXAM
     and Mr. Pierno that any payment by MAXXAM under the Guaranty shall be
     offset in like amount plus interest at 12% per annum from the date of
     payment on the Guaranty to the date of payment to MAXXAM by Mr. Pierno. 
     Such offset may be made from any payments due Mr. Pierno from MAXXAM
     which lawfully may be the subject of such offset, including any payment
     under any compensation arrangement or employee benefit plan.  The
     Guaranty was entered into by MAXXAM for the convenience of Mr. Pierno and
     replaces a previous guaranty with substantially the same terms entered
     into in February 1993 in respect of a promissory note dated January 28,
     1993.  

               Pursuant to the terms of Mr. Pierno's employment agreement with
     MAXXAM, his personal loans outstanding on the date of the agreement are
     forgiven at the rate of $15,000 per year beginning March 8, 1991, with
     any remaining balance being due and payable upon Mr. Pierno's termination
     of employment.  At the time of the agreement, MAXXAM had loaned an
     aggregate of $150,000 at 6% interest to Mr. Pierno.  The current
     principal balance on such loans as of March 15, 1994 was $90,000.  Such
     loans are payable on demand, require monthly interest payments and are
     secured by real estate owned by Mr. Pierno.  The agreement also provided
     for up to an additional $200,000 in loans to Mr. Pierno bearing interest
     at 6% per annum, with interest being payable monthly and principal being
     due December 15, 1994 (with prepayments due upon the exercise by Mr.
     Pierno of any SARs granted pursuant to the agreement or employee benefit
     plan).  All of such amount has been borrowed by Mr. Pierno. 

               In July 1993, MAXXAM loaned Mr. Wade $100,000 pursuant to the
     terms of an unsecured promissory note which bore interest at an annual
     rate of 6%.  The loan was repaid within approximately one month with a
     cash payment of $50,000 and a new unsecured promissory note for $50,000,
     interest on which is payable monthly at an annual rate of 6%.  The new
     note is payable upon the earliest to occur of July 20, 1998 or Mr. Wade's
     termination of employment with MAXXAM.  In December 1993, Mr. Wade repaid
     $30,000 of the outstanding principal balance of the note.

               Mr. Levin, a director of the Company, is a partner in the law
     firm of Kramer, Levin, Naftalis, Nessen, Kamin & Frankel, which provides
     legal services for the Company and its subsidiaries.  

               In February 1992, Pittsburgh Forgings Company filed a voluntary
     corporate petition under Chapter 11, Title 11, of the United States Code
     in the United States Bankruptcy Court for the Western District of
     Pennsylvania.  Mr. Rusen was the Chairman, President and Chief Executive
     Officer of Pittsburgh Forgings Company at such time. 

               In October 1990, Amarlite Architectural Products, Inc.
     ("Amarlite") filed a voluntary corporate petition under Chapter 11, Title
     11, of the United States Code in the United States Bankruptcy Court for
     the Northern District of Georgia.  In December 1991, Amarlite obtained
     approval of its reorganization plan, which was funded and substantially
     consummated on January 14, 1992.  Mr. Haymaker was Chief Executive
     Officer and a director of Amarlite during such period.  


 
                COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE ACT

               Based solely upon a review of the copies of the Forms 3, 4 and
     5 and amendments thereto furnished to the Company with respect to its
     most recent fiscal year, and written representations from reporting
     persons that no Forms 5 were required, the Company believes that all
     filing requirements were complied with applicable to its officers,
     directors and greater than ten percent beneficial owners.


 
                                  OTHER MATTERS

     INDEPENDENT PUBLIC ACCOUNTANTS

               The Company has appointed Arthur Andersen & Co. as its
     independent public accountants through the conclusion of the audit with
     respect to the Company's 1993 fiscal year.  Representatives of Arthur
     Andersen & Co. plan to attend the Annual Meeting of Stockholders and will
     be available to answer appropriate questions.  Such representatives will
     also have an opportunity to make a statement at the meeting, if they so
     desire.

     STOCKHOLDER PROPOSALS FOR THE 1995 ANNUAL MEETING OF STOCKHOLDERS

               Stockholder proposals intended to be presented at the 1995
     Annual Meeting of Stockholders must be received at the Company's
     executive offices at 5847 San Felipe, Suite 2600, Houston, Texas 77057 by
     January 1, 1995 in order to be included in the Company's proxy statement
     and form of proxy relating to that meeting.

     OTHER MATTERS

               The cost of soliciting proxies in connection with the Annual
     Meeting will be borne by the Company.  The Company will, if requested,
     reimburse banks, brokerage houses and other custodians, nominees and
     certain fiduciaries for their reasonable expenses incurred in mailing
     proxy material to their principals.  Proxies may be solicited by
     directors, officers and employees of the Company without special
     remuneration.  The Company has retained Corporate Investor
     Communications, Inc. to assist in the distribution of proxies at an
     estimated cost of approximately $4,800 (including expenses).  In addition
     to the use of mails, proxies may be solicited by personal interviews,
     telephone or telegraph.

               The persons designated to vote shares covered by management
     proxies intend to exercise their judgment in voting such shares on other
     matters that may properly come before the meeting.  Management knows of
     no matters which will be presented for action at the meeting other than
     as referred to in this proxy statement. 
 

                                        By Order of the Board of Directors



                                        BYRON L. WADE
                                        Secretary

     April 29, 1994
     Houston, Texas 

                                 TABLE OF CONTENTS


     Notice of Annual Meeting of Stockholders
     Proxy Statement
          Election of Directors  . . . . . . . . . . . . . . . . . . . . . . 2
          The Board of Directors and its
               Committees  . . . . . . . . . . . . . . . . . . . . . . . . . 2
          Executive Officers and Directors . . . . . . . . . . . . . . . . . 4
          Principal Stockholders . . . . . . . . . . . . . . . . . . . . . . 7
          Executive Compensation . . . . . . . . . . . . . . . . . . . . . . 9
          Compensation Committee Report on
               Executive Compensation  . . . . . . . . . . . . . . . . . .  16
          Performance Graph  . . . . . . . . . . . . . . . . . . . . . . .  20
          Certain Transactions . . . . . . . . . . . . . . . . . . . . . .  21

          Compliance with Section 16(a)
               of the Exchange Act . . . . . . . . . . . . . . . . . . . .  22
          Other Matters  . . . . . . . . . . . . . . . . . . . . . . . . .  24



                                     [KAC Logo]





 
                          NOTICE OF 1994 ANNUAL MEETING
                                        AND
 
                                 PROXY STATEMENT



                                     IMPORTANT
                PLEASE SIGN AND DATE YOUR PROXY OR INSTRUCTION CARD
                  AND PROMPTLY RETURN IT IN THE ENCLOSED ENVELOPE. 





<PAGE>

                       INSTRUCTION CARD FOR DEPOSITARY SHARES
                            KAISER ALUMINUM CORPORATION
               SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS FOR THE
               ANNUAL MEETING OF STOCKHOLDERS TO BE HELD MAY 25, 1994

          The undersigned, a registered holder of $.65 Depositary Shares, each
     representing one-tenth of a share of the Company's Series A Mandatory
     Conversion Premium Dividend Preferred Stock ("Series A Shares"), hereby 
     authorizes the Depositary, through its nominee(s), to vote or to execute
     proxies to vote as designated on the reverse side, all Series A Shares
     underlying the Depositary Shares the undersigned is entitled to vote at
     the Annual Meeting of Stockholders to be held on May 25, 1994, and at any
     and all adjournments or postponements thereof.

          IMPORTANT:  IN ORDER FOR THE DEPOSITARY TO VOTE, THIS INSTRUCTION
     CAR MUST BE SIGNED, DATED AND RETURNED TO THE DEPOSITARY (DIRECTLY OR
     THROUGH YOUR BROKER) IN THE ENCLOSED ENVELOPE ON OR BEFORE MAY 24, 1994.

                                                                 SEE REVERSE
                                                                    SIDE 



<PAGE>

<TABLE>
<CAPTION>  
     /X/ PLEASE MARK VOTES AS IN THIS EXAMPLE.

     DEPOSITARY SHARES WILL BE VOTED BY THE DEPOSITARY AS DIRECTED BY THE UNDERSIGNED.  IF NO CHOICE IS SPECIFIED, THE DEPOSITARY
     WILL ABSTAIN FROM VOTING WITH RESPECT TO THE SERIES A SHARES UNDERLYING THE DEPOSITARY SHARES FOR WHICH NO INSTRUCTIONS HAVE
     BEEN GIVEN.
    <S>                                                             <S>
     1.  Election of Directors                                         2.  In their discretion, the Depositary is authorized to vote
         NOMINEES: Robert J. Cruikshank, George T. Haymaker, Jr.,      upon such other matters as may properly come before the
         Charles E. Hurwitz, Ezra G. Levin, Robert Marcus              meeting or any adjournments or postponements thereof,
         and Paul D. Rusen.                                            hereby revoking any instruction(s) heretofore given by the
                                                                       undersigned.

         FOR ALL 
         NOMINEES /  /    /  / WITHHOLD                                FOR /  /  AGAINST /  /   ABSTAIN /  /
     (except as marked         FROM ALL
     to the contrary)          NOMINEES                                Please sign name(s) exactly as printed hereon.  If stock is
                                                                       held in the name of more than one person, EACH person
     /  /                                                              should sign.  Executors, administrators, trustees, etc.,
     To withhold authority to vote for any individual nominee(s)       should give full title as such.  If a corporation, please
     while voting for the remainder, write the name of the             sign full corporate name by duly authorized officer.  If a
     nominee(s) for which authority is withheld in the space           partnership, please sign in partnership name by authorized
     above.                                                            person.
                                                                                                Dated:                1994
                                                                                                Title:
                                                                      Signature:
                                                                      Signature:



     </TABLE>
 


                      PROXY FOR 8.255% PRIDES, CONVERTIBLE PREFERRED STOCK
                                    KAISER ALUMINUM CORPORATION
                     SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS FOR THE
                     ANNUAL MEETING OF STOCKHOLDERS TO BE HELD MAY 25, 1994

          The undersigned hereby appoints GEORGE T. HAYMAKER, JR., CHARLES E.
     HURWITZ, and JOHN T. LA DUC as proxies (each with power to act alone and
     with power of substitution) to vote, as designated on the reverse side,
     all shares of 8.255% PRIDES, Convertible Preferred Stock the undersigned
     is entitled to vote at the Annual Meeting of Stockholders to be held on
     May 25, 1994, and at any and all adjournments or postponements thereof.

                                                                 SEE REVERSE
          PLEASE SIGN, DATE AND MAIL THIS PROXY PROMPTLY            SIDE 

     
<PAGE>
     
<TABLE>
     <CAPTION>
     /X/ PLEASE MARK VOTES AS IN THIS EXAMPLE.
     WHEN PROPERLY EXECUTED, THIS PROXY WILL BE VOTED AS DESIGNATED BY THE UNDERSIGNED.  IF NO CHOICE IS SPECIFIED, THE PROXY
     WILL BE VOTED "FOR" THE ELECTION OF NOMINEES TO THE BOARD OF DIRECTORS AS SET FORTH IN THE PROXY STATEMENT.
     <S>                                                         <S>

     1.  Election of Directors                                   2.   In their discretion, the proxies are authorized to
     NOMINEES: Robert J. Cruikshank, George T. Haymaker, Jr.,         vote upon such other matters as may properly come
     Charles E. Hurwitz, Ezra G. Levin, Robert Marcus                 before the meeting or any adjournments or
     and Paul D. Rusen.                                               postponements thereof, hereby revoking any proxy or
                                                                      proxies heretofore given by the undersigned. 
         FOR ALL 
         NOMINEES /  /    /  / WITHHOLD                               FOR /  /  AGAINST /  /   ABSTAIN /  /
     (except as marked         FROM ALL
     to the contrary)          NOMINEES                               Please sign name(s) exactly as printed hereon.  If
                                                                      stock is held in the name of more than one person,
     /  /                                                             EACH person should sign.  Executors, administrators,
     To withhold authority to vote for any individual nominee(s)      trustees, etc., should give full title as such.  If a
     while voting for the remainder, write the name of the            corporation, please sign full corporate name by duly
     nominee(s) for which authority is withheld in the space          authorized officer.  If a partnership, please sign in
     above.                                                           partnership name by authorized person.
                                                                                                Dated:                1994
                                                                                                Title:

                                                                      Signature:
                                                                      Signature:


     </TABLE>
 



                                      PROXY FOR COMMON STOCK
                                   KAISER ALUMINUM CORPORATION
                      SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS FOR THE


          The undersigned hereby appoints GEORGE T. HAYMAKER, JR., CHARLES E.
     HURWITZ, and JOHN T. LA DUC as proxies (each with power to act alone and
     with power of substitution) to vote, as designated on the reverse side,
     all shares of Common Stock the undersigned is entitled to vote at the
     Annual Meeting of Stockholders to be held on May 25, 1994, and at any and
     all adjournments or postponements thereof.

                                                           SEE REVERSE
          PLEASE SIGN, DATE AND MAIL THIS PROXY PROMPTLY      SIDE 

     
<PAGE>
     
<TABLE>


     <CAPTION>

     /X/ PLEASE MARK VOTES AS IN THIS EXAMPLE.
     WHEN PROPERLY EXECUTED, THIS PROXY WILL BE VOTED AS DESIGNATED BY THE UNDERSIGNED.  IF NO CHOICE IS SPECIFIED, THE PROXY WILL B
     VOTED "FOR" THE ELECTION OF NOMINEES TO THE BOARD OF DIRECTORS AS SET FORTH IN THE PROXY STATEMENT.
     <S>                                                         <C>

     1.  Election of Directors                                   2.   In their discretion, the proxies are authorized to vote
     NOMINEES: Robert J. Cruikshank, George T. Haymaker, Jr.,         upon such other matters as may properly come before the
     Charles E. Hurwitz, Ezra G. Levin, Robert Marcus                 meeting or any adjournments or postponements thereof,
     and Paul D. Rusen.                                               hereby revoking any proxy or proxies heretofore given by
                                                                      the undersigned.
         FOR ALL 
         NOMINEES /  /    /  / WITHHOLD                               FOR /  /  AGAINST /  /   ABSTAIN /  /
     (except as marked         FROM ALL
     to the contrary)          NOMINEES                               Please sign name(s) exactly as printed hereon.  If stock is
                                                                      held in the name of more than one person, EACH person
     /  /                                                             should sign.  Executors, administrators, trustees, etc.,
     To withhold authority to vote for any individual nominee(s)      should give full title as such.  If a corporation, please
     while voting for the remainder, write the name of the            sign full corporate name by duly authorized officer.  If a
     nominee(s) for which authority is withheld in the space          partnership, please sign in partnership name by authorized
     above.                                                           person.
                                                                                                Dated:                1994
                                                                                                Title:

                                                                      Signature:
                                                                      Signature:


     </TABLE>