Alcan Review Impact of Closing Icelandic Aluminium Smelter

Alcan Inc. announced today that it will carefully analyse the close results of last Saturday's public consultation in Hafnarfjordur and assess the impact these results may have on the future of its ISAL aluminum smelter. Citizens of Hafnarfjordur voted by a small majority (50.3%) against a local urbanisation plan that included the expansion of the ISAL smelter.

"Alcan has noted the results of the public consultation, and will now carefully review all available options" said Michel Jacques, President and CEO, Alcan Primary Metal Group. "A large proportion of the citizens of Hafnarfjordur support our project and I would like to thank them, as well as all of our ISAL employees, for their invaluable contribution in advancing the development of this project that we believe is beneficial to all stakeholders," he added.

Employing approximately 450 people, the ISAL smelter has a current capacity of 180,000 tonnes per year. The planned expansion of the ISAL smelter would see the implementation of Alcan's world-leading AP35 technology, raising the total capacity to 460,000 tonnes per year. Start-up of the expansion is planned for 2010 with full production in early 2011.

"Alcan is proud of its 40-year relationship with the local community in Iceland and will continue to work together with all involved to provide for a better future for ISAL and all its stakeholders." said Jean-Philippe Puig, President of Alcan Primary Metal Europe and Cameroon. "Alcan has recently secured a block of energy and the authorization from the Icelandic Government for the project," he added.

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