Former Alcan CEO Blames Regulatory Approval For Hold Up On New Smelter

Monday, October 29, 2007 03:59 AM

Prince George, B.C. - Dick Evans, the former CEO of Alcan (which has now been taken over by Rio Tinto in an acquisition of its shares) says there is a reason why Kitimat hasn’t seen any construction of a new smelter "Regulatory delays and local opposition are to blame for the company not going ahead with the construction of a new smelter in that community ."

Evans says the smelter would produce 800,000 tons of emissions down from 1.3 million that the company now produces.

Alcan and now Rio Tinto were turned aside by the British Columbia Utilities Commission last year when they tried to enter into a new agreement with BC Hydro for their excess power . At the time, the BCUC turned the agreement aside saying BC Hydro was offering too much for Alcan’s power generated at the Kemano station.

BC Hydro has now returned to the Commission with a new offer, but they have been asked to provide specific details of why Hydro is offering more money in some cases for spot power rather than firm power.

The new plant would employ fewer workers and the District of Kitimat has been locked in a battle with the company saying the new smelter should be built to use the bulk of the power produced by the diversion of the Nechako river rather than entering into an agreement with BC hydro which the District says will result in Alcan (Rio Tinto) being paid in excess of $1 billion dollars for power the community says was supposed to be produced solely for the use "in the vicinity".

At a recent get together of Rio Tinto to introduce the company heads to the people of Canada, Tom Albanese, the CEO of Rio Tinto headquartered in the UK said if Canada opts to place strict emission controls, the company could consider moving operations off shore.

Rio Tinto ( which has acquired Alcan) is involved in Mining, aluminum production, copper, diamonds, energy coal and uranium, gold and iron ore.

Rio Tinto has interests in Canada’s Northern diamond fields and has a 58.7% of the shares and a controlling interest in Iron Ore Canada

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Posted on Monday, October 29, 2007 03:59 AM in News by 250 News

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Comments

Posted by: Parrothead on October 29 2007 8:10 AM

So go already, we're not interested in overpaying you just to be here. Our trading partners and the WTO call that a "subsidy" and it's not permitted.

Posted by: Chadermando on October 29 2007 8:13 AM

I say let them go off shore and BC should take back the Nechako river for the good of the citizens of BC. We should not submitt to imperialist blackmail of our own resources especially when Alcan is in violation of the original agreement.

Kemano should be bought out by BC Hydro and nationalized to the citizens of BC. To make it happen a water use tax should be implimented to make it impossible for a private enterprise to run Kemano at a profit. With Kemano in the hands of BC Hydro the BC government could then do what Quebec does to take market share in the aluminum smelter business and negotiate cheep power for the exclusive use to produce aluminum. Furthermore the Canadian government should act as a watchdog to ensure Rio Tainto don't have a free ride to just go and manipulate another country into an abusive blackmail type arrangement offshore.

Posted by: diplomat on October 29 2007 8:40 AM

Kitimat would become a ghost town if the smelter is scrapped.

How about building the new smelter and reducing Kemano's generating capacity by allotting less water to it and allowing a lot more water (year round) to flow into the Nechako?

BC Hydro wants to buy the excess power from Rio Tonto (sorry, Tinto) just because it is available and for sale.

It would require legislation crafted in such a way that RT, Kitimat and the river all become winners.

BC Hydro should be given the least important consideration, if any.

Posted by: giterdun on October 29 2007 10:40 AM

HEY RIO TAKE YOUR FOOTBALL AND GO HOME! SOUNDS LIKE YOU GUYS LIKE TO CONTROL THE RULE BOOK JUST LIKE ALCAN DID.NOTHING HAS CHANGED HERE. WE WOULD BE BETTER OFF IF B.C. OWNED AND CONTROLED THE HYDRO PORTION OF THIS COMPANY. WE ( THE TAXPAYERS ) OWN THIS RESORCE, THEREFORE WE SHOULD BENIFIT FROM THE POWER PROFITS. I AM IN FAVOR OF BIG BUSINESS BUT NOT WHEN IT CONTROLS A RESORCE SO MASSIVE THAT IT EFFECTS THE WHOLE PROVINCE. HYDRO POWER SHOULD BE CONTROLLED BY THE GOVERNMENT.

Posted by: furtree on October 29 2007 2:33 PM

These Rio Tinto folks, sure aren't the brightest bulbs in the box are they. How in hell, are they going to take the hydro power with them, show these dip turds the door out. Shite, with that amount of hydro available, Kitimat could do anything it wishes. SHhhh, keep it down Kitimat , but, I bet if you send China, an "E" mail, outlining the situation, they'll be here tomorrow to invest in your town.

Posted by: diplomat on October 29 2007 6:22 PM

Britain, France, USA, China? Why? How about Canadians owning and controlling their own resources? What gives?

Posted by: furtree on October 31 2007 10:32 AM

diplomat says, How about Canadians owning and controlling their own resources? What gives?
Nothing wrong with that concept diplomat, except. Why then, didn't we purchase Alcan before Rio Tinto bought it? May as well have been China. The past shows that U.K. companies have a notorious
reputation for leaving their mess behind ,have you not ever heard of Granby corp? They were also from the U.K.,left crap all over this province. Google, Anyox , learn for your self.

Posted by: metalman on October 31 2007 10:46 AM

Let WREEO TAINTO leave, we don't want 'em anyhow. B.C. should own the goldarn system.
Get rid of the multinationals, they are eating us out from the inside. When all the nourishment is gone then they will be gone too. Show them the door, and give them the boot. It has been a long long time since the big outfits like the former Alcan have been good corporate citizens, and even way back when, they were only here for the resources, in this case water. With the impending world crisis over water we must begin to take back what is rightfully ours, beginning with our water. Once they have sucked the last drop out they will be gone, leaving only a trail of dust and a memory.
metalman.