Alouette aluminum smelter to grow with USD 2 billion investment over 15 years

North America's largest aluminum smelter will become even larger after the Alouette aluminum joint venture announced plans to invest more than USD 2 billion over 15 years.

The massive facility which is the 10th largest in the world will boost production capacity after Hydro Quebec agreed to allocate 500 MW of cheap electricity after December 2015. The project will add 216 smelting pots at a cost of USD 1.5 billion and develop a new low energy consumption technology that will create nearly 1,500 jobs in the province. In addition to 300 direct jobs at the facility in Sept Iles, investments will create more than 1,000 aluminum transformation jobs across the province.

Mr Jean Charest Quebec Premier said that "This very important announcement is going to allow this aluminum plant to maintain its position as the most energy efficient aluminum plant in the world."

Demand for aluminum, a light weight industrial metal, is growing for the automotive, aircraft, packaging and infrastructure industries around the world, especially in the rapidly growing economies of Asia.

Mr Charest said that the investment was part of the province's Plan Nord to develop the huge potential of the remote part of the province. Although it likely would have occurred without the government plan it is helped by the construction of massive new hydroelectric generation stations in La Romaine and Eastman.

The premier described Alouette as one of Quebec's large industrial jewels contributing to Quebec being the third most important aluminum producer in the world and accounting for 90% of Canadian output.

Electricity is a key component of making aluminum and the cheapest industrial rate provided by Hydro Quebec will make Alouette among the lowest-cost producers. The public utility also extended its energy supply contract for the existing Alouette facility to 2041.

The Phase III of the Alouette expansion will increase the production capacity by more than 60% to 930,000 tonnes of aluminum per year from 575,000 tonnes. Engineering studies and the approval of financial commitments from Alouette shareholders are still required. In addition to the operational jobs, the construction phase is expected to support 15,000 jobs each year in Quebec.

Alouette will contribute up to USD 75 million to Quebec's economic development fund and invest USD 10 million to create an industrial chair on carbon research with the University of Quebec at Chicoutimi.

Mr Andre Martel president and CEO of Aluminerie Alouette said that the agreement helps the company maintain its position "as global leader in aluminum production while playing a major role in our region's prosperity. The agreement is not only supporting an expansion project but also all of our research and development activities, through which we are able to grow."