Alcan Sustainability Report 2004

Business Group Profile

"Bauxite and Alumina's operations are focussed on maximizing sustainability. To us, sustainability means finding new ways to manage our resources more efficiently, to make our workplace safer, to enhance the skills of our employees and to work more effectively in our host communities. We believe that, in the long term, this approach positions us for enduring growth and helps us anticipate and prepare for the forces that will shape our future."

– Michael Hanley, President and Chief Executive Officer, Alcan Bauxite and Alumina



Alcan's Bauxite and Alumina group (B&A) represents a global network of bauxite mines and alumina refineries, supplying Alcan's Primary Metal group and external customers with smelter-grade alumina in addition to producing specialty aluminas for third parties.

With the acquisition of Pechiney, Alcan owns and/or operates eight bauxite mines and deposits, seven smelter-grade alumina refineries and seven specialty alumina plants. Smelter-grade alumina is used in the production of primary aluminum while specialty aluminas are used in a variety of applications, including fire retardant products, refractory bricks, zeolite, alum, plastics, paper, solid surface products, absorbents and ceramics. As well, an Alcan-developed specialty alumina is now being used in public water treatment programs in markets like India and Bangladesh where it is a proven cost-effective solution for treating arsenic-contaminated well water.

Alcan is also a global leader in the sale of technology and technical assistance for alumina processing, with its own facilities among the most modern and efficient in the industry. The Bauxite and Alumina group also owns/leases and operates a global transportation network that includes rail systems, freight trains, bulk cargo vessels and port facilities.

In recent years, Alcan has positioned its business portfolio around low-cost bauxite and alumina assets in Australia, which has substantially lowered costs and improved our competitive position. In September 2004, Alcan announced a $1.3 billion investment to expand and improve the Gove alumina refinery in the Northern Territory of Australia. This will increase the refinery's capacity from about 2.1 million tonnes per year to approximately 3.8 million tonnes and will also significantly improve operating efficiency and environmental performance. Related stakeholder engagement efforts in 2003 include a detailed study regarding the environmental and social impacts of the expansion.

The Pechiney acquisition has increased the group's alumina production capacity from 4.4 million tonnes per year to 6.5 million tonnes, making Alcan the second-largest alumina producer in the world. We now have a strategic partnership with Corporación Venezolana de Guayana (CVG) Bauxilum CA in Venezuela and, with Pechiney's complementary technological expertise and reputation for processing all types of bauxite, Alcan has reinforced its global position in this sector. B&A is also now home to Pechiney's bauxite and alumina trading team, one of the world's leaders in this area.

With approximately 5,000 employees in twelve countries, the group is well positioned to improve
Alcan's low-cost position while working alongside stakeholders to develop innovative and sustainable solutions.

Consult Alcan Facts 2004 for more information on this Business Group.


Bauxite and Alumina facilities:      
       
Bauxite mines/deposits
by country
     
  Tonnes
Australia   6,000,000  **

Brazil

  2,500,000  *
France***   70,000  

Ghana

  700,000  *
Greece   494,000  
Guinea   3,650,000  *
India**      
       
Alumina facilities
by grade/country
A = smelter-grade
B = specialty chemical grade
     
    Tonnes  
Australia A   3,550,000  *

Brazil

A 270,000  *
  B 10,000  

Canada

A 1,140,000  
  B 160,000  
France A 233,000  
  B 468,000  
Germany B 17,000  
Greece A 458,000  
       
* Represents Alcan's share
** Some bauxite extraction sites not yet in operation
*** Fluorspar mining
     


  Bauxite and Alumina Profile
Products/Services Bauxite, smelter-grade and specialty aluminas
Number and type
of facilities (including
partial holdings)
8 bauxite mines and deposits
7 alumina refineries
7 specialty alumina plants
Global transportation network
Markets served Smelter-grade alumina and specialty-grade
alumina for a variety of applications
Major customers Alcan Primary Metal, LME
% 2003 revenues 4
Number of employees Approx. 5,000

 
Bauxite and Alumina
Sustainability in Bauxite and Alumina
Key Issues
Performance Summary
Sustainability Examples
Primary Metal
Rolled Products Americas and Asia
Rolled Products Europe
Engineered Products
Packaging
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Alcan Sustainability Report 2003
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