Alcan hires Bechtel for Kitimat smelter study

Alcan Inc. (AL.TO: Quote, Profile, Research) said on Friday it has hired U.S. engineering firm Bechtel to produce a detailed feasibility study and confirm cost estimates and scheduling for the expansion of Alcan's Kitimat smelter in British Columbia. Alcan, which has agreed to be taken over by Anglo-Australian miner Rio Tinto (RIO.L: Quote, Profile, Research) for $38 billion, has said it plans to spend $1.8 billion expanding the smelter to bring its annual output to 400,000 tonnes per year. "The contract with Bechtel aims to provide all the planning, engineering and site investigation work necessary to submit to the Alcan board of directors for final approval of the project," Alcan said in a release. Financial details of the contract were not disclosed.