Alcan Modernization
Since 1997, Rio Tinto Alcan has spent about $25 million on feasibility studies to retrofit, modernize or expand the Kitimat Works smelter. On August 14, 2006, Rio Tinto Alcan announced that it will proceed with a (US) $2.5 billion investment to fully modernize the Kitimat Works smelter, introducing the latest evolution in Rio Tinto Alcan’s AP (Aluminium Pechiney) technology.
The implementation of the modernization project was subject to conditions, which have now been met; the BCUC decision of our new electricity purchase agreement with BC Hydro; confirmation for our environmental permitting; and, on May 3, 2007, Rio Tinto Alcan and the Canadian AutoWorkers (CAW), Local 2301 reached agreement to extend the term of the collective labour agreement (CLA) to 2012. Sixty-one per cent (61 per cent) of Rio Tinto Alcan Primary Metal British Columbia employees voted to ratify the new CLA.
Due to the current global economic conditions the project has been ramped down to a slower spend rate, but RTA is fully committed to continuing to work towards final board of directors approval. Once the modernized Kitimat Works smelter comes on stream, it will increase production by more than 40 per cent, from the rated capacity of 275,000 tonnes per year to about 400,000 tonnes per year, making Kitimat a world class aluminum producing facility for the next 35+ years and beyond.
In addition, the modernization will secure about 1,000 stable, technically enriched jobs in BCs northwest region for the long term and roughly double this number during the construction phase.