Kitimat Aluminum Smelter In For Upgrade

Wednesday, October 22, 2008 09:35 AM

Kitimat, B.C.- There are plenty of suits in Kitimat today, and now we know why.

Rio Tinto (Alcan) is announcing it is going to invest an additional US$300 million in the modernization of the Kitimat aluminum smelter. In a release issued from the head office, RioTinto says "The Kitimat Modernization Project leverages two of our greatest competitive advantages - clean, self-generated hydropower and internationally renowned AP smelting technology. This investment continues construction and maintains critical paths for the project, while we seek opportunities to reduce capital costs in the currently challenging economic climate" said Dick Evans, Chief executive, Rio Tinto Alcan.

This stage of funding will secure the launch of an anode baking furnace, substation, casthouse, and construction workers' camp, as well as ancillary services.

"The Kitimat Modernization Project remains a priority for Rio Tinto Alcan and this investment allows us to continue building on what the project team has already accomplished," said Jacynthe Côté, President and chief executive officer, Primary Metal, Rio Tinto Alcan. "We will progress with construction and driving further value from the project."

The modernization of the Kitimat aluminum smelter is expected to increase its current production from 245,000 tonnes per year to approximately 400,000 tonnes per year and will reduce greenhouse gas emissions by up to 40 per cent per year.

The release does not say when the modernization will begin, or how many jobs the project may create, or how many jobs will exist after the upgrade is complete.

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Posted on Wednesday, October 22, 2008 09:35 AM in News by 250 News

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Comments

Posted by: He speaks on October 22 2008 12:29 PM

Good news for the north

Posted by: giterdun on October 22 2008 12:44 PM

Great news...but typical Alcan/Rio...no start date. Come on guys quit leaving us dangling on a thin string.

Posted by: Eagleone on October 23 2008 4:41 AM

I heard on the BBC the other day this company was in financial trouble? They were talking of possibly breaking it up and British government intervention?

I think it might be a good time for BC Hydro to buy the Kemano dam works with a guaranteed long term rate for the aluminum business. Alcan/Rio sounds like they could use the capital, but they would never give that asset up voluntarily....

Posted by: giterdun on October 23 2008 7:57 AM

BC Hydro should buy the hydro portion of Alcan/Rio....Good idea Eagleone. This could possibly be the best long term investment that our province could ever make.Bring control back to the people.