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Alcan signs contract with Bechtel

Alcan Inc. has signed a contract with Bechtel to produce a Detailed Feasibility Study and Preliminary Engineering to confirm the cost estimate and overall project and execution schedule of the planned expansion of Alcan's Kitimat smelter as conditionally announced on August 14, 2006.

The contract with Bechtel aims to provide all the planning, engineering and site investigation work necessary to submit to the Alcan Board of Directors for final approval of the project. The project is also subject to certain conditions including environmental permits and the successful conclusion of agreements with B.C. Hydro and the Canadian Auto Workers (CAW) union. Alcan reached an agreement with CAW in May 2007 and is currently working to satisfy the other two conditions.

The scope of Bechtel's work includes the tendering process of long-lead purchases for the planned smelter, such as busbar, cathode shells, potroom cranes and pot gas scrubbing systems. Bechtel's work will also take the engineering and process design that has been developed for the Kitimat smelter, which will be equipped with leading-edge AP3X technology, and will incorporate all local building codes and site conditions necessary to move to the execution phase of the project.



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