Alcan takes smelter project knock-backs in its stride

Alcan takes smelter project knock-backs in its stride

Alcan seems set to take in its stride delays to two of its smelter projects—the expansion of Kitimatin British Columbia and the expansion of the ISAL smelter in Iceland.

The company said it is working with BC Hydro to address concerns about the power component of the Kitimat expansion expressed by the state utilities commission. 'We hope that within weeks we’ll be able to resubmit an agreement and achieve approval there.'

The breakthrough ruling by the British Columbia supreme court, affirming Alcan’s rights over its hydro power in the state, has also cleared up the long-standing dispute with the District of Kitimat.

Dick Evans, Alcan chief executive and president, said 'it’s very likely (the project) will be back on track, albeit with about a year delay we’ve suffered as a result of the (battle with the District) and some of the other things we’ve had to deal with.'

In Iceland 'we recognize we have some work to do' in persuading the local community of the benefits of an expansion of the aging ISAL smelter, Evans said. Local residents recently voted by a narrow margin against a proposed expansion from 179,000tpy to 460,000tpy.

Evans declined to give a time-frame as to what may happen next but played down suggestions it could close the facility if it couldn’t modernize and expand it. 'I think there were some comments made that the long-term future of the operation could be jeopardy if we decide not to modernize…but I stress the word 'long-term' here.'

The other company projects are currently on track—the 350,000tpy Sohar joint venture smelter in Oman, due next year, the AP50 technology pilot plant with capacity of 60,000tpy in Quebec, due 2010, and the giant Coega smelter in South Africa, also due 2010.