Alcan said Tuesday the British Columbia Utilities Commission (BCUC) rejected its Long-Term Energy Purchase Agreement between the company and BC Hydro with regard to its investment plan in Kitimat, British Columbia.
An approval by the BCUC was one of three conditions set by Alcan for final go ahead of the $1.8 billion Kitimat Works modernization project at the time of announcement in August 2006. The other two key conditions are the resolution of environmental permitting issues and a long-term labor agreement to ensure stability during the planning, the construction and the start-up of the modernization project.
“We are disappointed with the BCUC decision and will be studying it closely to better understand the Commission’s rationale and to determine the potential impact on the feasibility and timing of the Kitimat Modernization Project.”, said Michel Jacques, President and Chief Executive Officer, Alcan Primary Metal Group.
