" />
Building a world of
resilient communities.

MAIN LIST

 

Alcoa cancels $1.1 billion smelter project in Quebec

Alcoa (NYSE:AA) will not go ahead with a $1.1 billion modernization of its smelter in Baie-Comeau, Que., the company said Monday.

The announcement comes after six months of intense negotiations over Quebec government support for the project.

The aluminum giant said it could not reach a deal with the province over energy costs and, as a result, the existing smelter will eventually close. Alcoa is the largest company in the region, employing 1,800 people.

Work on the expansion and modernization was suspended in January after the Liberal government refused to respect commitments made in late 2002 by the previous Parti Quebecois administration.

"Despite several months of hard work and good-faith negotiations between the company and the Quebec government, the parties have not been able to generate the conditions that could lead to an agreement," Jean-Pierre Gilardeau, president of Alcoa Canada Primary Metals, said in a statement.

"With energy representing more than 30 per cent of our operating costs, we simply cannot invest a billion dollars in a project with the risk that energy prices will rise considerably over the life of that project," Gilardeau said. "Over 40 years, even with only moderate increases, energy would represent a $10-billion cost."

Alcoa said it intends to keep the smelter in operation "at least until 2010, as long as environmental requirements, energy availability and market conditions will allow."

Written by CBC News Online staff

Copyright © 2004 Canadian Broadcasting Corporation - All Rights Reserved

What do you think? Leave a comment below.

Sign up for regular Resilience bulletins direct to your email.

Take action!  

Find out more about Community Resilience. See our COMMUNITIES page
Start your own projects. See our RESOURCES page.
Help build resilience. DONATE NOW.

 

This is a community site and the discussion is moderated. The rules in brief: no personal abuse and no climate denial. Complete Guidelines.

Tags:  

Mutualized Solutions for the Precariat

Large companies have long sought to boost profits by converting their …

How Transition Palo Alto Brings Sharing and Community to Silicon Valley

Transition Palo Alto is part of the worldwide Transition network working to …

Participatory Economics and the Next System

What kind of “next system” would support the economics of …

Emergence of a New Economics

There is an argument that the emergence of a new economics based on human …

Exit from the Megamachine

Opening a newspaper or listening to the radio news exposes us to a flood of …

The Commons Collaborative Economy Explodes in Barcelona

Always known as a vivid and creative city, Barcelona is taking the lead as …

Limits to Growth: Policies to Steer the Economy away from Disaster

The existing economy is already environmentally unsustainable. It is utterly …