Rio Tinto boss Tom Albanese is confident the surging Chinese demand for aluminum will guarantee Kitimat's $2 billion smelter replacement by 2011.

He made the announcement in his first tour of BC since Rio Tinto took over Alcan last year.

China's own smelters can't compete because RT's power is cheaper - China depends on coal-based generating plants.

The smelter upgrade will increase production by 40% while reducing greenhouse gas emissions by 40%, he said today.

All the stumbling blocks have been cleared away, with a labour contract settlement with smelter workers achieved, environmental approvals received, and a long-term deal approved by the B.C. Utilities Commission for power sales to BC Hydro.

Albanese made the remarks at a Vancouver Board of Trade luncheon.

The project still requires approval by the London-based Rio Tinto Group Board.

There are currently 1,500 smelter workers earning an average $85,000 per annum in Kitimat, and the new smelter will need only 1,000. CEO Albanese said the cuts will be made "respectfully" through attrition. Meanwhile, RT "will need to attract more young workers during the construction phase who will then put down roots in the community as the modernized plant becomes operational," he said.

Mayor Richard Wozney attended the Board of Trade speech and said he hoped there would be no further delays in rebuilding the smelter.

"From our perspective as a community we've been after Alcan over the past 10 years to do something about modernization and hopefully now Rio Tinto, who have committed that they will take over and do the modernization project," Wozney said.

"Alcan has made a lot of promises and kept none of them. I hope that in this case Rio Tinto keeps and honors its promise and actually do the modernization project."