Rio Tinto Invests Extra US$300 Million In Kitimat Smelter Project

LONDON -(Dow Jones)- Rio Tinto announced Wednesday that it is to invest an additional US$300 million in the modernisation of the Kitimat aluminium smelter in British Columbia, Canada, bringing the current project funding total to over US$500 million. Dick Evans, Chief executive, Rio Tinto Alcan, commented: "...This investment continues construction and maintains critical paths for the project, while we seek opportunities to reduce capital costs in the currently challenging economic climate". This stage of funding will secure the launch of an anode baking furnace, substation, casthouse, and construction workers' camp, as well as ancillary services. The modernisation of the Kitimat aluminium smelter will increase its current production from 245,000 tonnes per year to 400,000 tonnes per year, representing growth of more than 60%. Rio Tinto Alcan's proprietary AP technology is the most cost effective, energy efficient, and environmentally friendly smelting technology available, allowing the modernised plant to reduce greenhouse gas emissions by up to 40% per year, the group said.