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WATER RESOURCES

Alcan is firmly committed to the sustainable management of the significant water resources that it owns and/or oversees. These resources and other water rights are viewed as a form of public trust and a fundamental component of the Company's long-term licence to operate. Management of water resources is also an integral component of Alcan's EHS FIRST management system that seeks to improve the efficiency of water use, including direct consumption, recycling and reuse. The Bauxite and Alumina group and the Primary Metal group are the largest users of water at Alcan and both share an important challenge to optimize water utilization.

From an environmental perspective, managing water resources for electricity generation encompasses a wide range of issues, including water levels, shoreline erosion, temperature, water routes, and other challenges such as impacts on downstream habitat and species. Management efforts need to address any negative impacts associated with the above, in addition to the positive contribution that water management can make to preventing catastrophic floods and droughts.

Saint-Louis river close to the Beauharnois plant
in Quebec, Canada.

In January 2004, Alcan released a position paper in recognition of the International Year of Freshwater. Entitled Committed to the Sustainable Management of Water – One of Our Most Precious Resources, the paper provides concrete examples of Alcan's best practices in watershed management, increased process efficiencies, usage conservation efforts, the reduction/improvement of wastewater and water system remediation efforts. The paper is available for downloading at www.alcan.com.

Alcan is also actively involved in efforts related to global water management, including those of the World Business Council for Sustainable Development, the Organisation for Economic Co-operation and Development, the United Nations Environment Programme, and the World Economic Forum Water Initiative (co-chaired by Alcan's president and CEO).

Alcan often uses water that is shared with surrounding communities. Reductions in the availability of water can result in water restrictions on Alcan, which can impact its ability to operate. In cases where public water supply is being used, lowering water consumption and recycling water helps reduce the need to draw from that supply. These efforts can reduce costs for Alcan and, importantly, help ensure water availability for the community, other businesses and the ecosystem.

Sustainability Example:

Water recycling reduces consumption at Alma

Stakeholders expect the Company to undertake conservation efforts aimed at reducing and, in some cases, eliminating industrial water consumption. Alcan's role as a large industrial user of water revolves around the scarcity of water resources and the importance of contributing to a long-lasting supply, at the lowest cost, for both Alcan and the communities, often supplying the water through the public domain.

Sustainability Example:

Recycling community wastewater for alumina processing

At the same time, as we help to manage shared water resources in some communities, there are also opportunities to help treat wastewater generated by non-Alcan users in surrounding communities, thereby contributing to overall access to resources (see the Kamsar project in the Community Development section of this report).

Process improvements at Alcan over the years have led to reduced consumption and, in some cases, made it possible to eliminate process water releases and to use rainwater in place of other water resources. Alcan continues to explore these opportunities to promote more efficient water use.

Total water use
in millions of m3
     
2004
254.8
2003
177.8
2002
163.56

The increase in total water use is due to the Pechiney acquisition.


Total water use rate
in millions of m3 per million of US$ sales
     
2004
0.0102
2003
0.0128
2002
0.0131

Alcan demonstrated significant improvement in 2004, reducing its rate of water consumption. GO-PDM, a data collection tool that will improve the ability to assess its use of water resources and identify opportunities for improving performance, is currently being implemented.




Water consumption by source

2004
A Ground water 31%
B   Seawater   32%
C   Surface water   29%
D   Water from public network   8%

2003
A Seawater (cubic metres) use for power 38%
B   Tank/Rainwater (cubic metres)   7%
C   Fresh surface water river/lake (cubic metres)   29%
D   Alcan-owned well/bore hole water (cubic metres)   19%
E   Public net drinking water (cubic metres)   6%
F   Water recycled from bauxite residue lakes   1%

Alcan's definitions of water sources were modified between 2003 and 2004.

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