Increasing Production Capacity To Meet Growing Global Demand
Project Description
Located on the Douglas Channel, a year-round ice-free ocean port located in Kitimat, Northwest BC, Rio Tinto Alcan’s aluminum smelter complex is strategically located to meet the growing demands of the Pacific Rim. $2.5 billion is being invested into improving the facility to keep up with demand, including introducing Rio Tinto Alcan’s latest propriety AP technology to turn it into one of the most modern smelters in the world. Following this renovation, the Northwest BC facility will become one of Rio Tinto Alcan’s three largest smelters. Rio Tinto Alcan has also recently injected an additional $300 million into the construction phase, which begins in 2011. The result will be a top tier, low-cost, large-scale, low-carbon asset, with reduced emissions of up to 40.0% annually.
The Opportunity
While the production capacity will increase by 48.0% to 420,000 tones, the number of smelting pots will in fact be reduced from 900 to 384, through the use of energy-efficient and environmentally friendly smelting technology. The modernized Kitimat smelter will also be powered exclusively by hydroelectricity.
During the three-year construction phase, the modernization is expected to generate significant employment opportunities in the short term (up to 1,000 highly skilled jobs). Currently, Rio Tinto Alcan is the largest employer in the manufacturing sector of British Columbia, with roughly 1,500 employees and an annual provincial contribution of over $289 million. This is in part due to strong working relationships with regional, business, economic, and First Nations groups.
The Terrace Advantage
Rio Tinto Alcan’s aluminum smelter complex, Kitimat Works, has supported Terrace for almost 60 years, which includes a $450,000 donation towards the Terrace SportsPlex in 2007. The modernization of Kitimat Works is a sign that they will be supporting Terrace for years to come. Rio Tinto Alcan has a local hire policy for Kitimat and Terrace, where Terrace contractors are often awarded contracts due to their competitive advantage of being in close proximity when bidding on projects. Local Terrace companies also have the advantage of a comprehensive understanding of the area and neighboring regions, enabling them to react more quickly to changes.
