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Introduction
Operational Overview
APM-BC operates one of the largest industrial complexes in British Columbia. Its focal point is the Kitimat aluminum smelter – also referred to as Kitimat Works – located on the northwest coast, at the head of Douglas Channel and immediately to the south of the community of Kitimat.
The smelter currently has a capacity of 275,000 tonnes of aluminum per year. The main raw material used in the smelting process is alumina ore, which is imported from Australia by ship. Alumina is dissolved in a bath composed of highly conductive materials, into which an electric current is flowed to precipitate out molten aluminum. This “electrolytic reduction process” takes place within the more than 900 steel pots located in the smelter’s potrooms, and requires large amounts of electricity.
Molten aluminum is transported to one of two casting centres in the smelter, where it is temporarily stored in holding furnaces. Various alloys are added to provide characteristics such as strength and corrosion resistance. Aluminum is then poured into moulds and chilled with water to form solid ingots of specified shapes and sizes.
Electricity for the Kitimat smelter is generated at the Kemano powerhouse, a hydroelectric generating station with a firm capacity of about 700 megawatts and an average production of about 790.
This generating station uses water impounded in the 91,000-hectare Nechako Reservoir in north-central British Columbia.
The Kitimat smelter produces three types of ingots: sheet (rectangular), extrusion or billet (cylindrical), and trilock ingots. The first two are value-added products, while the third is sold for re-melting. Products are shipped to markets in Asia and North America, with Korea, Japan, Southeast Asia, and the United States being the most common destinations.
APM-BC is part of the Alcan Primary Metal Group (APMG)– one of four business groups making up the worldwide operations of Alcan Inc. Kitimat Works is one of 22 smelters in APMG’s network. Headquartered in Montreal, Alcan Inc. is a leading global materials company, delivering high quality products and services worldwide. Alcan Inc. is represented by 65,000 employees in 61 countries and regions, and posted revenues of US$20.3 billion in 2005.
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Kitimat Works Modernization In August 2006, Alcan Inc. announced its intention to make a US$1.8 billion investment in the modernization of the Kitimat smelter. The benefits would be seen across all facets of APM-BC’s performance, and the modernized smelter would be designed to utilize virtually all of the firm power generated at the Kemano powerhouse. An overall workforce reduction of about 500 would, it is expected, be achieved through attrition. The end result would be a renewed operation with long-term sustainability, supporting about 1,000 stable and technically enriched jobs in Kitimat. At the time this report went to print, the investment remained subject to final approval by Alcan’s board of directors, and to certain conditions, including environmental permits and the successful conclusion of agreements with BC Hydro and the CAW union. It is expected that the new capacity could begin coming on-stream in 2009. |