Rio Tinto has ok'd an additional US$2.7 billion capital investment to modernize its aluminum smelter in Kitimat.
This new investment will allow for completion of the US$3.3 billion project in 2014.
The Kitimat modernization project will increase the smelter’s production capacity by more than 48%.
The smelter will be powered by hydropower and use Rio Tinto Alcan’s smelting technology to reduce carbon dioxide emissions intensity by about 50%.
“Once completed, Kitimat will be one of the most efficient and lowest-cost smelters in the world, and will better position us to serve the rapidly growing demand for aluminium in the Asia-Pacific market,” said Jacynthe Côté, chief executive of Rio Tinto Alcan.
Jean Simon, president, primary metal, Rio Tinto Alcan, said “For nearly 60 years, the smelter has been a major impetus for the economic development of northwest B.C. This is one of the largest private investments in B.C.’s history, and it will ensure the sustainability of the aluminum business in Kitimat for decades to come.”
The company predicts the project will provide 1,000 long-term jobs and 2,500 jobs during the peak of the construction phase.
Jennifer Harrison
@JHarrisonBIV