Alcan discusses upgrades

Aluminum producer Alcan Inc. says it is sitting down with the District of Kitimat to produce a "positive environment" for the planned $1.8-billion upgrade to its smelter in northern British Columbia. The Montreal-based company and the district government have been at odds over Alcan's plans to sell surplus electricity from its Kemano power station while reducing the work force at its Kitimat operation. Alcan said in a news release that to facilitate discussions it has agreed to a request by the district for a 30-day extension of the deadline to file its appeal arguments after losing a B.C. Supreme Court decision on the power sales. The move follows negotiation of a new five-year contract with its 1,300 Kitimat employees, represented by the Canadian Auto Workers union, which Alcan said was a precondition of the upgrade proceeding. The project, announced last August, also needs environmental approvals. Alcan said in a news release yesterday the modernization of its Kitimat smelter would increase Alcan's annual global primary aluminum production by more than 4 per cent and make Kitimat not only one of Alcan's largest wholly-owned smelters, but also one of the three largest in North America. Kitimat's aluminum production capacity would increase by 40 per cent and greenhouse gas emissions would drop by half a million tonnes per year. However the plan calls for a 500 job reduction.