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[February 2003]

Definitive Feasibility Study Commences at Australian Alumina Plant


Alcan Inc (Montreal, Canada) has announced a definitive feasibility study, a significant step forward towards a potential expansion of its alumina production capacity at Alcan Gove, NT, Australia. The proposed expansion would increase the capacity of the refinery from 2 million tonnes per year to 3.5 million tonnes per year using, using proprietary Alcan technology to increase operating efficiency.

"The proposed Gove expansion is a key part of our investment strategy to double Alcan's value every five years," said Michael Hanley, President of Alcan's Bauxite, Alumina and Specialty Chemicals Group. "It will provide Alcan with an overall alumina production cost that will be below the world average, and will have a very positive impact on environmental performance."

Preliminary engineering and environmental impact studies for the expansion have already commenced for a third production stage at Gove. The initiative is part of a strategy to profitably expand alumina production at facilities having advantaged cost positions.

Engineering studies and environmental approvals are expected by mid-2004. During this time, Alcan will work with the Australian Government and local stakeholders to ensure that issues such as energy supply, infrastructure and land tenure for the expansion are addressed ahead of the final project approval. The expansion should take three years, with increased capacity coming as early as 2007.



ENDS


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