May 30 2008
Rio Tinto Alcan announced that it is going forward with an accelerated pre-feasibility study for two additional phases to the AP50 pilot plant for which preparatory work has begun in Saguenay, Quebec. The study will evaluate the addition of another 140,000 tonnes of capacity to the pilot plant. Representing a potential investment of between US$2 billion to US$2.5 billion, the expanded plant would become the platform for future technological developments. The study will also consider a possible subsequent expansion of up to a total of 400,000 tonnes.
"The AP50 pilot plant along with the proposed US$1 billion Alma, Quebec expansion and the US$2.5 billion modernisation project in Kitimat, British Columbia, represent significant investments in Quebec and Canada. They underline Rio Tinto Alcan's position as a leader in aluminium production and as the partner of choice in aluminium smelting technologies," said Dick Evans, chief executive of Rio Tinto Alcan. "In addition to consolidating Quebec's position as a major global aluminium hub, the overall investment program of up to US$6 billion in Canada will further strengthen Rio Tinto Alcan's suite of modern, low-cost aluminium smelters during a period of continuing strong global demand."
The first phase of the AP50 pilot plant will have 44 pots and an initial production of 60,000 tonnes of aluminium using the new generation of AP technology and powered exclusively by clean, renewable hydroelectricity.
The potential expansion of the Alma smelter announced in April 2008 would add 150,000 to 190,000 tonnes to its current production of slightly more than 400,000 tonnes. The Alma expansion is estimated at approximately US$1 billion and is expected to be completed in 2011.
"The construction of the AP50 pilot plant and its potential subsequent expansion, along with the expansion of Alma, would represent a substantial increase in our Quebec investment program announced in December 2006," said Jacynthe Côté, president and chief executive officer of the Rio Tinto Alcan Primary Metal business unit. "These projects demonstrate Rio Tinto Alcan's commitment to build sustainable competitive advantages for our shareholders and for Quebec and British Columbia."
The US$2.5 billion Kitimat modernisation would upgrade the existing 54-year old smelter using state-of-the-art AP technology and increase its aluminium production capacity by 125,000 tonnes using hydroelectric power from Rio Tinto Alcan's Kemano power station. It would also reduce greenhouse gas emissions by more than 40 per cent per year. First metal from the modernized smelter is expected in 2011.