In addition to sustainable actions discussed throughout this report, the following examples represent a cross section of initiatives related to corporate sustainability within the Alcan Primary Metal Group.

Reducing Polycyclic Aromatic Hydrocarbon (PAH) Emissions
In our aluminum smelting operations, we currently use two different cell technologies: prebake and Söderberg. In prebake smelters, the anode is composed of blocks of solid carbon that are baked before use in the smelting pot, whereas the Söderberg system uses a carbon anode that is baked in the smelting pot. In the latter, a combination of pitch and calcined coke is periodically added to the anode in paste form, with process heat solidifying it on the anode. Of the two types of Söderberg technology in our older smelters—horizontal stud and vertical stud—horizontal stud Söderberg technology releases the highest proportion of PAH emissions into the atmosphere, and both forms of Söderberg operations release more PAHs than prebake-based operations. Some PAH compounds have carcinogenic potential when present in the workplace in high concentrations (as was the case previously in Söderberg smelters). Current workplace conditions have greatly improved over the past 20 years, with a reduction in PAH exposure of more than 55% and more effective preventive measures such as technical process improvements, air-filtered vehicle cabs and advanced forms of respiratory protection.

In addition to specific efforts to reduce GHGs, Alcan promotes a two-pronged approach to addressing overall emissions reductions from our aluminum production operations. Any Alcan smelter built since 1980 uses the more efficient prebake technology, and existing Söderberg-based smelters are being replaced with prebake-based production capacity as well as being continually upgraded as new technologies and processes are developed and introduced. For example, since 1983, source reduction efforts in our horizontal stud Söderberg potrooms and the Söderberg replacement program have resulted in a 76% reduction in PAH emissions.

More recently, in 2001, Alcan's research and development commitment resulted in the introduction of a new low-tar pitch used in the smelting process that reduces PAH emissions by an additional 47% in our Quebec, Canada Söderberg smelters. The cumulative effect of these efforts since 1983 has resulted in a decrease of total PAH reductions of 88% compared to earlier levels.

Quebec Smelting Facilities
PAH Total Emissions

Recycling Organic Waste
In Iceland, soil erosion caused by man and nature is a persistent problem. After centuries of this ecological decline, many areas are virtually stripped of topsoil and, therefore, cannot support the growth of higher plant forms. Poor growing conditions and erosion are especially prominent in the Greater Reykjavík area, home to some 70% of the population. Ecological progress requires plant nutrients and organic substances as a growing medium.

ISAL, an Alcan smelter operating in Iceland since 1969, is one of several companies that assumed a lead role as a founding member of SKIL 21, a project based on the recycling of organic waste for use on eroded land. Waste categories include food waste, wood, paper, cardboard, yard waste and manures. Currently, 16 companies and institutions participate in separating waste at source, delivering organic waste as raw materials for composting, and subsidizing transportation and program costs.

ISAL provides separated food waste from the Company canteen, which yields approximately 40% nutrient-rich and odour-free compost. In 2001, the plant contributed 22 tonnes of waste. Project benefits include recycling, helping to fight local soil erosion, improving the quality of life in the community, and generating unique opportunities for local schools in the training and education of students in environmental science, statistics and field work.

P2—Beyond Compliance in British Columbia
Alcan is the first large industrial operation in British Columbia (B.C.), Canada, to inaugurate a Pollution Prevention (P2) Plan endorsed by a local public advisory committee and the provincial government. The goal of the P2 Plan is to move beyond regulatory compliance by reducing or eliminating pollutants at source. Also, largely on the strength of this P2 effort, Alcan's Kitimat Works is the first industrial facility in B.C. to obtain a Multi-Media Environmental Permit from the provincial government, a permit that addresses multiple emissions, effluents and solid wastes.

The P2 Plan has already:

• Reduced chlorine consumption at Kitimat's casting operations;
• Eliminated the use of certain Halon gases;
• Reduced alumina losses due to wind and processing;
• Stopped sandblast waste from entering storm sewers;
• Introduced recycling of spent dry batteries;
• Reduced amounts of dissolved aluminum and fluoride in the metallurgical laboratory effluent by at least 80%.

Current P2 targets aim to achieve a 10% reduction of greenhouse gases by 2004; reduce anode paste consumption and produce a 10% increase in cathode life by 2003; improve efficiencies in the use of natural gas; reduce spent potlining; provide a 75% reduction in the amount of alumina lost in wharf unloading and handling by 2003; and eliminate additional Halon gases (R12 and R22) by 2010.

The Company also contributed CAN$200,000 to a Haisla First Nations initiative to have the National Oceanic Atmospheric Administration (NOAA) study the impact of past PAH contamination on fish in the Kitimat Harbour. Today, Kitimat Works has eliminated almost all PAH releases from its liquid effluents.

Health Initiatives Support Sustainability
Early epidemiological studies that identified a risk of lung cancer for smelter employees exposed to old Söderberg processes resulted in preventive measures being introduced.

These include R&D efforts to develop a new low-PAH pitch, increased health surveillance as well as industrial hygiene control and improvement of working conditions. Among these efforts are a respiratory protection program that requires the use of high-performance respirators, better work practices, introduction of ventilated mobile equipment and higher capacity ventilation systems to capture gases and dust.

A New Life for Isle-Maligne
Prior to the completion of the new Alma smelter, Alcan closed its neighbouring 57-year-old Isle-Maligne facility in Quebec, Canada. Approximately CAN$12 million was invested in cleaning up the 149,000-square-metre (1.6-million-square-foot) site, including the removal of contaminated soil and replacement with new fill. All the smelting potlines were removed, scrubbers were demolished, and buildings were cleaned.

Alcan then donated the land and buildings to the community, which plans to lease space to small and medium-sized businesses involved in processing activities using aluminum, composite materials or wood. This initiative boosts employment in the area, gives the old site a new lease on life, and provides some tax relief for the Company.