Alcan's British Columbia investments thrown by power commission decision

Canadian producer Alcan's ambitious expansion programme at its Kitimat facility—announced just last August—has been thrown onto the back foot by a decision by the British Columbia Utilities Commission not to approve the power supply component of the deal.

Alcan had unveiled plans to expand its 277,000tpy Kitimat smelter to 400,000tpy by 2010-2011. A long-term power supply deal was a key component of the overall project.

The Commission has said it does not view the deal as in the public interest but everyone is now waiting for the release of its detailed statement before reacting.

"We are disappointed with the BCUC decision and will be studying it closely to better understand the Commission's rationale and to determine the potential impact on the feasibility and timing of the Kitimat Modernization Project", said Michel Jacques, President and Chief Executive Officer, Alcan Primary Metal Group.