THE GLOBE AND MAIL
Rio Tinto to go ahead with Kitimat smelter expansion
Edited by : AL CIRCLE
1 min read
Rio Tinto Alcan is pushing ahead with construction of a $3.3-billion (U.S.) smelter in Kitimat, B.C., even as stagnant prices have spurred a selloff of other aluminum assets.
London-based Rio Tinto PLC (RIO-N52.15-0.92-1.73%), which acquired Montreal-based aluminum giant Alcan for $38.1-billion in 2007, is expected to announce Thursday it has final approval to modernize the 57-year-old smelter to double its capacity.
Approval will see Rio spend another $2.7-billion on Kitimat, after already setting aside $650-million towards the upgrade, raising the construction price tag more than 30 per cent from $2.5-billion. The plan includes demolishing a building and clearing space for a new plant.
Rio said this week it expects to increase capital spending 17 per cent next year to at least $14-billion on developing projects and said it continues to sell everything it produces, despite global economic turbulence.
The updated smelter will increase capacity 50 per cent to 420,000 tonnes from 280,000 tonnes by 2014. Emissions will be reduced by 50 per cent.
London-based Rio Tinto PLC (RIO-N52.15-0.92-1.73%), which acquired Montreal-based aluminum giant Alcan for $38.1-billion in 2007, is expected to announce Thursday it has final approval to modernize the 57-year-old smelter to double its capacity.
Approval will see Rio spend another $2.7-billion on Kitimat, after already setting aside $650-million towards the upgrade, raising the construction price tag more than 30 per cent from $2.5-billion. The plan includes demolishing a building and clearing space for a new plant.
Rio said this week it expects to increase capital spending 17 per cent next year to at least $14-billion on developing projects and said it continues to sell everything it produces, despite global economic turbulence.
The updated smelter will increase capacity 50 per cent to 420,000 tonnes from 280,000 tonnes by 2014. Emissions will be reduced by 50 per cent.
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