Alcan Inc. announced today that it will enter into discussions with the District of Kitimat to identify, frame and develop a positive environment conducive to the realization of the planned S$1.8 billion Kitimat Works Modernization Project. Alcan agreed to a request by the District to extend the deadline to file its appeal arguments of judge Brenner's decision by 30 days to facilitate talks between the parties.

The Kitimat Works Modernization Project was announced on August 14, 2006 and is subject to the final approval of 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. Alcan reached an agreement with CAW in May 2007 and is currently working to satisfy the other two conditions.

The modernization of Alcan's Kitimat smelter would increase Alcan's annual global primary aluminum production by more than four percent and make Kitimat not only one of Alcan's largest wholly-owned smelters, but also one of the three largest in North America. Kitimat's aluminum production capacity would increase by 40 percent and reduce GHG emissions by half a million tonnes per year.