MONTREAL (CP) -- Rio Tinto Alcan says Quebec's government has agreed to lend the aluminum company up to $175 million to help fund construction of a pilot plant in the province.
The money will be repayable in full by 2012.
The AP50 pilot plant will be in the Saguenay and Lac-Saint-Jean region, where Alcan has historically based much of its production.
The new plant will run exclusively on hydroelectric power and initially produce about 60,000 tonnes of aluminium.
Anglo-Australian mining company Rio Tinto PLC gave its approval for the project in October.
