More water, more options for Alcan smelter

A higher-than-usual accumulation of snow at Alcan’s smelter in British Columbia has provided the aluminum giant with some interesting options.

These include storing the water for future use, or selling surplus power to B.C. Hydro.

After several years of low water levels, which forced the partial closure last year of the Kitimat smelter, snow levels in the Kemano reservoir have been rising. Alcan owns the power-generating dam there.

Last year, chronic water shortages allowed Alcan to reduce its metal production by half in order to meet its obligations to provide power to the province, as well as sell additional power to the energy-starved northwestern American states.

The Kitimat smelter has an annual capacity of 275,000 tonnes.

Last year, Alcan posted profits of US$5 million on sales of $12.6 billion, as a result of the slumping North American economy and a worldwide glut of aluminum, which drove down prices.

Profits rebounded to $135 million in the first quarter of this year, aided by the recovery of the U.S. economy. Demand for aluminum is expected to grow by 4% during 2002, led by demand in Asia.