Alcan and Kitimat decide to make up and be friends again

Alcan and the city of Kitimat in British Columbia seem to have ended their long-running dispute and decided to make up and become friends again.

The company said it held talks with the local authorities yesterday with both parties agreeing on the need to work together to promote Alcan's longer-term investment and expansion plans for the Kitimat smelter.

It has no doubt helped that the British Columbia supreme court has just ruled in favour of Alcan's recent strategy of running the 277,000tpy smelter below capacity—output last year, for example, was 238,000t—and selling the excess power to the local grid.

The company has proposed investing heavily in Kitimat with a view to lifting capacity to 400,000tpy by 2011, although its plans have been knocked back by the state power commission. An appeal against its ruling that the power component of the expansion is not in the best interests of the state has already been lodged by Alcan.

That seems to have united company and town after many years of sniping and legal action. "I am very encouraged that we are meeting," said Richard Wozney, Mayor of Kitimat. "The District prefers dialogue and is hopeful these discussions might produce greater economic security for our town and region. We are attending these meetings in good faith and good will without prejudice to any other options. We will always do what is best for Kitimat and this includes our friends at Alcan."