* 1,000 highly skilled, high paying, sustainable jobs for 35-40 _

eg 7

Modernization [II

_ a “smelter first provision”,

B6 - The Terrace Standard, Wedriesday, September 6, 2006

highlights
* Modernization of Kitimat Works i is a $2 billion project
to expand Kitimat Works aluminum smelter with state- of-

‘the-art AP technology.
' * Modernization offers significant environmental, and

health and safety i improvements. Alcan will work with gov-
emment, business and First Nation Jeaders to ensure that

-modernization ‘is done responsibly and sustainably. —

* Modernization will mean more aluminum production

than ever before by increasing the output tonnage. up to «

400,000 tonnes annually.

oe The introduction: of the latest evolution of Alcan's
. world leading AP technology will make Kitimat Works one °
of the most modern smelters in the world.

* By construction end, modernization will secure up to

years..

That's down from the current | 500 eniployees but: the
_ reduction will come from natural attrition, mainly. through .
_retirements, and there will be a smooth transition for the
. workforce.

* The proposed agreement with BC Hydro will include

to shut down aluminum production to deliver power to BC
Hydro..

* Alcan and BC Hydro have entered into an Agreement-

in-Principle under which Alcan will sell power not required

for the Kitimat ‘smelter directly to BC;Hydro, signaling an
_end to sales’ of power to Powerex as of December 31st,

2006.
According to BC Hydro, the utility. currently” ‘imports

about 10 -.13 per cent of its annual electricity supply require."
_ Ments to meet domestic demand.

* The modernized smelter will use more power for alu-

‘minum production than ever before (up to 100 per cent of all.

reliable energy). “Reliable” is defined as available 24/7, 365
days a year, even during low water years)
* Alcan has been and will continue to work diligently with

» the region, businesses, economic groups and First Nations to’
“stimulate new job creation through economic development.

and diversification.

Here’s ToA
Prosperous Future_

On Your Plans To

Smelter!

THANK YOU
for your continued
ommitment to British
lumbia and especially
Northwest... =

; From 1 the
Management & Staff
RBC 7
Royal Bank

R B C SERVING TERRACE SINCE 1 946

so that Alcan cannot be forced -

3011 Blakeburn n Street Terrace

Phone: 250-635-6567 » Fax: 250-635- 4161
Www. westernequipmentitd.¢ com

Congratulations

: Modernize Your Kitimat

Money
for med
students
LAST year Alcan do-
nated $500,000 to the’
University of North-
“ern British Columbia's —
‘medical. school. The
money is put toward
-a trust fund ‘for bur-”
saries for students.
“ Those are Alcan of-
» ficials Marco Palmieri
‘.;and, Cynthia Carroll
- with then UNBC presi-
dent Charles Jago and
Marylin Davies, the

~trust’s chair and Ter- -
race city councillor.

~~

oO

From Page BS

With the contract from 2007- 2009 for 170 MW firm energy and 60 MW.

“non- -firm, it means power for the equivalent of 170,000 households for sure,”
and as ‘many as 60, 000 more if the non- ~firm Power is delivered in a good

water year,
All this will assist in-filling an ‘ithmediate gap between electricity supply

and demand, reducing BC Hydro’s reliance on imports. Meeting this imme- .

diate need is particularly important, with much of the new electricity supply
from the contracts awarded by B.C. Hydro not expected until 2010.
BC Hydro also gains access to any additional, non firm power supply

_beyond the smelter needs, at the existing, attractive LTEPA price until 2014,

after which the supply. will be available at a fixed, competitive, market-based
price until at least 2024: BC Hydro also achieves scheduling rights that al-
low them to make use of the flexibility of the Kemano project. to maximize
benefits to ratepayers.

_ Inreturn for Alcan supplying an additional 30 MW of firm energy from

Kaman Industrial
Technologies |

KAMAN DIREC T.com.

| Looking Forward
To Working With You_ i

In Your Expansion.

104-2905
Kenney Street |
- Terrace 635-2926

Alcan

on your expansion.

You have made for a
brighter Future

And Into The Future

Congratulations

\

Alcan, B. C. Hydro have a long sales history.

2007 to’ 2009, and partially reinstating power it had recalled for the period . ...

2010 to 2014; Alcan will receive two lump-sum payments. The-$45 million
payable at closing in 2007 and $66 million payable in:2011] represent the
differences between the prices in the existing agreement and the mid-range
pricing resulting from the awarded contracts in BC Hydro’s 2006 Open Call
for Power. Prices under the existing contract will continue until 2014, and

» will move to a'fixed, market-based price from 2015 to 2024.

This agreement, combined with recently announced purchases from in- ”
dependent power producers, are important steps to meeting the growing de-
mand for power, but more is still needed. BC Hydro is continuing its plans
for the 2007 and 2009 Open Calls for Power to purchase new electricity re-
quirements from independent power ‘producers, and continues to investigate

other supply options...
The terms and conditions of the reinstated agreement | must ‘be approved

by the BC Utilities Commission.

The announcement
of your expansion
is good news -

for the Northwest

THE CITY

TERRACE

Fountain Tire
BES ty fea z_ A

...Congratulations
| Alcan on your
Announcement...

Thank You For Your
_ Support From
- Smitty & Staff at

[FOUNTAIN TIRE (TERRAC >E)-
4641 Keith Ave. + Terrace, BC =
Phone: 250-635-4344

Manager: BK (Smitty) Smith - smitty.smith@fountaintire.com