Greenhouse Gas (GHG) Emissions
Reducing greenhouse gas emissions requires a focus on R&D and continuous improvement in Alcan’s technology and processes. Successes include smelting process innovations such as the ALPSYS^® pot control technology and other various solutions that reduce GHG emissions. Active external engagement with relevant stakeholders is also critical to promoting the design of effective national and international policy frameworks that are economically viable and environmentally effective over the long term.

Responsible Use of Energy
Improving performance, ensuring resource availability and reducing energy costs are critical to effectively managing energy consumption. Strategies to increase productivity with energy resources and overall business value include: improving hydroelectric generating systems and increasing process efficiency, and identifying long-term, low-cost energy sources for business expansion. See Energy section for details.

Community Development
Alcan’s Primary Metal Group has a compelling presence both in terms of the size and number of operations and in contributions to and influence on community well-being. This presence is reinforced through the Community Investment Program, partnerships with customers and suppliers, continuous workforce training, and by encouraging value-added manufacturing. Commitments include supporting regional diversification and assisting with community transition in the case of a plant closure. 

EHS FIRST
EHS FIRST continues to drive improvements in operational processes. The Primary Metal Group had a record year in 2006 for achievements in environmental, health and safety performance in many areas, such as recordable injuries and lost time injuries and illnesses. Improvement rates in many areas surpassed 2006 targets and many facilities reached major milestones such as over one million hours worked with no lost-time accidents. The application of best practices in environment, health and safety across the business group continued to be a priority and resulted in improvements in most areas.

Several major projects in the pipeline
The last 12 to 15 months have been very fruitful in term of projects for Alcan Primary Metal as several brownfield and greenfield projects approached or reached the starting line. Thus the group is the proud partner of choice for many of the world’s most attractive opportunities, including greenfield projects in Oman, South Africa (COEGA), and Saudi Arabia and our modernization and brownfield expansion projects in Kitimat, Canada, and Edea, Cameroon. 

•	The construction of an AP50 pilot plant in Jonquière, using this new state-of-the-art electrolysis technology, as the first step in a planned ten-year CAN$2.0 billion investment program in Quebec’s Saguenay-Lac-Saint-Jean region. Preparations for the AP50 pilot plant are under way. The site will be ready to accommodate construction at the beginning of 2008. This pilot plant is expected to produce approximately 60,000 tonnes of aluminum per year and will be the development platform for future generations of AP50 technology.
•	Alcan is building a $180 million aluminum spent potlining recycling plant in Quebec’s Saguenay–Lac-Saint-Jean region. This unique industrial-scale pilot plant will employ 50 people and has a capacity of approximately 80,000 tonnes to recycle spent potlining using Alcan’s proprietary technology. The plant’s technology was developed at Alcan’s Arvida Research and Development Centre (ARDC) and is expected to begin pot lining treatment operations in the second quarter of 2008. The site could also process spent pot lining for other Quebec aluminum producers.
•	Alcan has a 20% stake in a 350 kt/y (thousand tonnes per year) smelter in Oman, currently under construction, that is expected to begin production in the third quarter of 2008. Based on Alcan’s AP35 technology, this state-of-the-art smelter will demonstrate Alcan’s technology and cost leadership, operational know-how and management expertise and will, over the smelter’s life, promote the strong technical and economic development of the region.  It will be the first time that the AP35 technology is being used in a newly constructed smelter
•	Alcan signed a $100 million contract for the front-end engineering design and management of the first phase of the proposed 360,000 t/y greenfield COEGA aluminium smelter. The second phase of the project, which would bring aluminum production to an estimated 720,000 t/y is also currently in development. The project has an estimated total cost of $2.7 billion for both phases and project financing is expected to be used. The project will use the latest version of Alcan’s proprietary AP3X series smelting technology. Phase I construction of the smelter is expected to begin in 2008 and is subject to the successful completion of the project's next steps and financial arrangements. It is scheduled to come on line in 2010.
•	Alcan has signed a Heads of Agreement with Saudi Arabian mining company Ma’aden to develop a proposed $7-billion integrated aluminum “mine-to-metal” project including bauxite mining, alumina refining, power generation and aluminum smelting. Alcan would hold a 49% stake in the project and would provide technology and operating management support, with Ma’aden holding the balance of 51% ownership.
•	Alcan signed a contract with Bechtel to produce a Detailed Feasibility Study and Preliminary Engineering of the planned expansion of Alcan’s Kitimat smelter which will be equipped with leading-edge AP3X technology. The modernization of Alcan’s Kitimat smelter would increase its production capacity by 40% and Alcan’s annual global primary aluminum production by more than 4%.
•	Alcan signed a Letter of Intent (LOI) with the Government of Cameroon for the potential upgrade and expansion of their joint-venture Alucam primary aluminum smelter to an approximate 260 kt/y capacity and for the construction of a new hydroelectric power station at a total estimated cost of $900 million. The Government of Cameroon and Alcan each own 46.7% of Alucam.  They both agreed on a set of prerequisite conditions that would need to be in place in order for this project to be realized. If such conditions are in place and findings of the various studies are positive, Alcan and the Government of Cameroon could proceed with the upgrade and expansion of Alucam as well as the construction of the power station to support the expansion. Alcan plans to complete all of the necessary technical studies to assess the scope of these projects over the next few months, and is expected to make a decision in the course of 2007.