This business group includes bauxite mines, alumina refineries and our specialty chemicals businesses. Approximately four to five tonnes of bauxite are required to produce approximately two tonnes of alumina, which in turn yield one tonne of primary aluminum. Including third-party sales, the Company's annual bauxite needs are approximately 15 million tonnes (Mt).

Alcan obtains its bauxite from mining subsidiaries, joint ventures, consortium companies and third-party suppliers. Following the divestment of our bauxite and alumina assets in Jamaica in 2001, this group now has seven bauxite mines/deposits in five countries, totalling 325 Mt of proven ore reserves—enough bauxite for all our alumina refineries to operate at current levels for at least 25 years. In 2001, we also expanded our position in Australia with the purchase of the remaining 30% ownership in the Gove alumina refinery and related bauxite mine.

Bauxite is refined into two different grades of alumina: smelter grade and specialty chemical grade. Alcan produces smelter-grade alumina at five locations in Australia, Brazil and Canada, while specialty chemical grade alumina is produced at three locations in Canada and the U.K. Specialty chemical grade alumina is used in a wide variety of applications, including fire retardant products, refractory bricks, zeolite, alum, plastics, paper, solid surface products and ceramics.

To transport these raw materials, Alcan owns/leases and operates a global transportation network that includes rail systems, freight trains, bulk cargo vessels and port facilities.