Bauxite mines/deposits: 7
Alumina refineries: 5
Specialty Chemicals production: 3
Countries represented: 6

Pursuit of the Company's governing objective of Maximizing Value remains the top priority in all business groups.

Maximizing Value: The overall strategy for the Bauxite, Alumina and Specialty Chemicals group (BASC) is to maximize value through asset optimization, expansion and/or acquisition of cost-advantaged assets. These efforts to maximize value will, simultaneously, contribute to sustainability by minimizing the environmental footprint through initiatives such as resource conservation, increased efficiency and reduced waste. Challenges include the availability of high-quality bauxite and how to best optimize the use of existing reserves. Several efforts were under way in 2002 to identify opportunities in these areas.

A key priority is to maximize the potential of the Gove complex in Australia following the Company's acquisition of a 100% ownership position in 2001. A cleaner production system has already been implemented as a result of Alcan's management systems and expertise. In 2002, plans were put in motion to assess the opportunities for expansion of the 2-million tonne capacity alumina facility and related bauxite mine. This included consultation with key local stakeholders.

By adding value through operational synergies and Alcan expertise, the Gove complex will become one of the lowest-cost alumina producers in the world while contributing to economic, environmental and social sustainability.

Environment, Health and Safety: As in all business groups, Environment, Health and Safety (EHS) is a constant business priority in BASC. Achievements in 2002 include the development of an EHS Performance Matrix that focuses on continuous improvement in all three areas.

In employee health and safety, each site has action plans in place to minimize employee exposure to industrial contaminants and to improve personal health. In addition to objectives for reducing accident and injury rates, all sites are committed to implementing Behaviour Based Safety by 2004. In pursuit of last year's objective for all facilities to seek registration to the OHSAS 18001, the group initiated plans in 2002 that will lead to three sites to be registered by the end of 2003 and, by the end of 2004, all facilities will be certified to this standard.

The process of continual EHS improvement relies on employee commitment as the group works towards the Company goal to develop an integrated EHS management system. For 2003, each BASC site will conduct a gap analysis related to the implementation of the integrated EHS system and action plans will be established with the goals of full compliance by the end of 2004.

Resource management is another top business priority. In 2002 the group decreased energy consumption and greenhouse gas emissions. Targets for emission, waste and energy reductions ranging from 5-10% have been set for each facility by 2004. Fundamental sustainability issues include safeguarding indigenous species and the rehabilitation of exhausted mine sites.

Stakeholder engagement: In Gove, Australia, the group worked alongside federal and state governments and a local aboriginal company to initiate a training program for the area's indigenous people. The school teaches important trade skills such as equipment operation, road construction, earthworks and mining; certain life skills are also part of the program. Click here to view the Alcan Gove 2002 Environment, Health, Safety and Community report PDF.

Early in 2002, the Company announced its intent to divest the Burntisland specialty chemicals plant in the U.K. When no buyer stepped forward, Alcan initiated a closure consultation process in September with employee and union representatives that was successfully concluded in mid-November.

See Practical Examples for details on select Bauxite, Alumina and Specialty Chemicals achievements in 2002.