Bechtel Signs $200 Million Agreement for Kitimat Modernization Project
SAN FRANCISCO, July 2008—Bechtel today announced it signed a $200 million engineering, procurement, and construction management agreement with Rio Tinto Alcan for the Kitimat Smelter modernization project in Kitimat, British Columbia.
“Bechtel is honored to be selected for this project,” said Andy Greig, president of Bechtel Mining & Metals. “This is an exciting opportunity for us and we look forward to being a part of Rio Tinto plans for the future.”
“Rio Tinto Alcan is pleased to announce the signing of this contract, one more critical step towards the realization of the Kitimat project. Bechtel brings together a unique combination of expertise, world-wide presence, and project experience,” said Jacynthe Côté, president and chief executive officer, Primary Metal, Rio Tinto Alcan.
The proposed $2.5 billion Kitimat Modernization Project would increase production capacity at the smelter by 40 percent, taking it up to 400,000 tons per year and increase Rio Tinto annual global primary aluminum production capacity by more than 3 percent. This will make Kitimat not only one of Rio Tinto largest wholly owned smelters, but also one of the three largest in North America. Kitimat’s aluminum production capacity will increase by 125,000 tons using clean and renewable hydroelectric power from the Kemano power station and also reduce greenhouse gas emissions by more than 40 percent per year. First metal from the modernized smelter is expected in 2011.
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