Apr 9 2008
Speaking today at a Canadian Club luncheon in Montreal, Quebec, Tom Albanese, chief executive of Rio Tinto, announced that Rio Tinto Alcan will proceed, on an accelerated basis, with a pre-feasibility study for an expansion of the Alma smelter in the Saguenay-Lac-Saint-Jean region of Quebec. The potential expansion would add approximately 170,000 tonnes to the current Alma smelter production of slightly more than 400,000 tonnes.
"I am very pleased to announce another positive step along the way in our ten year, US$2 billion Quebec investment program," said Mr. Albanese. "Rio Tinto intends to follow Alcan's lead as a champion of Canada and Quebec and build upon its positive economic and social legacy by continuing with investments that will create value and opportunity."
Alma is one of Rio Tinto Alcan's most modern and efficient smelters. The expanded smelter would have a capacity of approximately 570,000 tonnes and be one of the largest in North America. The study will evaluate the cost, timetable and conditions for completing the expansion, which is part of Rio Tinto Alcan's Quebec investment program announced in December 2006.
"Our objective is to complete the various feasibility studies on an accelerated basis," said Jacynthe Côté, president and chief executive officer of the Rio Tinto Alcan Primary Metal business unit. "This is another important part of our investment strategy and a further demonstration of our ongoing commitment to the development of the Saguenay-Lac-Saint-Jean region."
AP50 pilot plant
In addition to the proposed Alma expansion, Rio Tinto Alcan's Quebec investment program includes the construction, with options for future expansion, of an AP50 pilot plant using the new generation of AP technology and powered exclusively by clean, renewable hydroelectricity. The pilot plant will serve as the platform for future development of the AP50 technology.
Shipshaw power station
The program also includes a recently announced US$130 million investment to construct a new 225-megawatt high-efficiency turbine at the Shipshaw power station. The new turbine will facilitate the more efficient use of water resources. The station is a key component of Rio Tinto Alcan's extensive hydroelectric network, which has a total installed capacity of 2,687 megawatts in Quebec. The project is expected to be submitted to the Rio Tinto Board of Directors for final approval in the fourth quarter of 2008.
Spent potlining treatment pilot plant
Other investments in Quebec include US$225 million for the recently completed construction of a spent potlining treatment pilot plant. Pre-operational checks and pre-commissioning are underway at the facility, which will come on-line and begin ramping up this month, in keeping with the initial timetable.
Community Investment
Rio Tinto Alcan will maintain its significant community commitments by creating a foundation to be endowed with CDN$200 million over five years. This will ensure the continuation of significant activities such as the recently announced CDN$4 million contribution towards the building of the new Rio Tinto Alcan Planetarium; the CDN$1 million donation to the Montreal Neurological Institute; donations totalling CDN$650,000 to the Chicoutimi and Alma hospital foundations, in the Saguenay-Lac-Saint-Jean region, along with numerous other engagements in Quebec.
Posted April 9th,2008