Aluminum Industry in Quebec Will Lower Energy Rates for New Smelters

Montreal--The head of the Aluminum Association of Canada says, "producers are in an expansion mood after the new Quebec government indicated the sector will be a key part of economic growth plans in the province during the next decade."

Jacques Daoust, minister of economy, innovation and exports, revealed on Tuesday that he is developing a policy that will help the industry, especially on the issue of energy costs.

It is predicted that producers of fused alumina will see rates fall about 40% to a globally competitive level of about 2.7 cents per kwh from the current commercial rate of 4.8 cents and 90% of plant closures in the world during the past decade have happened in the highest cost facilities, while investments have progressively waned because they are no longer feasible.

In meetings on Monday, Simard said that energy and aluminum will be used as tools for economic development for the next five to ten years by working with industry players. He is optimistic that the rate will be lowered because of the "very clear signal that was reiterated by the government that it wants to support development of aluminum."

"Large investments won't happen overnight because the aluminum industry faces continued challenges, including a low global price," he said in an interview. But he said a commitment for lower energy prices could lead to the start of engineering contracts if operators "start seeing a light at the end of the tunnel."

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