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NEW BLOCK REPRESENTS 40% OF LONG TERM ENERGY SUPPLE
Alcan Inc. announces that it has secured 40 percent of the energy required for a potential 280kt/year expansion of its ISAL smelter in Straumsvik, Iceland. In an agreement signed with Reykjavik Energy, Alcan would purchase 200MW of geothermal power beginning in 2010 for a period of 25 years. "Alcan is pursuing some of the most competitive strategic initiatives for primary metal production in the world, all characterized by secure, competitively priced, long-term energy supplies," said Cynthia Carroll, President and Chief Executive Officer, Alcan Primary Metal Group at the signing ceremony. "Today's agreement further underscores Iceland's significance to Alcan's primary metal strategy and is an important step towards securing the total energy required for a potential ISAL expansion, energy that is clean and renewable," she added. Alcan is currently negotiating with Iceland's national power company, Landsvirkjun, for the remaining 60 percent of required energy. Employing approximately 470 people, the ISAL smelter has a current capacity of 180kt/year. The potential expansion would see the construction of one line, using Alcan's world-leading AP35 technology, raising the total capacity to 460kt/year. This expansion would add approximately 8 percent to Alcan's current overall smelting capacity, all of which would fall within the first quartile of the industry cash cost curve. Today, Alcan has a global smelting capacity of 3.5 million kt/year, represented by the Company's network of 21 smelters in 10 countries. "Together with its partners, Alcan is demonstrating its commitment to ISAL's 40-year relationship with the local community," said Rannveig Rist, General Manager, Alcan Iceland Ltd. "The Company has a proven track record on environment, health, and safety issues in Iceland, and was recently awarded the prestigious Icelandic Quality Award," she added. Statements made which describe the Company's intentions, expectations or predictions may be "forward-looking statements" within the meaning of securities laws. By their nature, forward-looking statements involve risk and uncertainty; the Company's actual results could differ materially from those expressed or implied in such forward-looking statements.
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