ALUMINUM SMELTING: Rio Tinto Alcan arranges $175M loan from Quebec

QUEBEC — Rio Tinto Alcan of Montreal has been granted a $175-million loan from the government of Quebec to further the construction of it AP50 pilot plant in the Saguenay-Lac-Saint-Jean region. The loan is repayable in full by 2012. The pilot plant is the first phase of the AP50 project that will produce 60,000 tonnes of aluminum per year. Using the new technology has the potential to provide lower capital expenditures per tonne; shorter construction, commissioning and startup timelines; improved labour productivity; and reduced operating costs, according to Rio. The technology operates at 500 kA generated exclusively by clean, renewable hydroelectricity. Rio Tinto Alcan is currently facilitating development of a local network of globally competitive suppliers for the AP50 project through its Regional Industrial Development Office. The Arvida Research and Development Centre will lead on-going initiatives related to industrialisation of AP technology. Rio has already begun construction of a new 225-MW high-efficiency turbine at the Shipshaw power station. It will replace four generator units at the Chute-à-Caron power station. More information about the AP50 technology is available at www.RioTintoAlcan.com.