Bechtel signs $200 million agreement for Kitimat project

Bechtel, one of the world’s premier engineering, construction, and project management companies, has signed an contract with Rio Tinto Alcan for the Kitimat Smelter modernisation project in Kitimat, British Columbia.

The contract, valued at $200 million has scope for engineering, procurement, and construction work.

Andy Greig, president of Bechtel Mining & Metals, said this is an exciting opportunity for us and we look forward to being a part of Rio Tinto plans for the future.

Jacynthe Côté, president and chief executive officer, Primary Metal, Rio Tinto Alcan, said that his company is pleased to announce the signing of this contract, one more critical step towards the realisation of the Kitimat project. Bechtel brings together a unique combination of expertise, world-wide presence, and project experience.

The proposed $2.5 billion Kitimat Modernisation Project would increase production capacity at the smelter by 40 percent, taking it up to 400,000 tons per year and increase Rio Tinto annual global primary aluminum production capacity by more than 3 percent.

The company claims this will make Kitimat not only one of Rio Tinto largest wholly owned smelters, but also one of the three largest in North America.

Kitimat’s aluminum production capacity will increase by 125,000 tons using clean and renewable hydroelectric power from the Kemano power station and also reduce greenhouse gas emissions by more than 40 percent per year.

First metal from the modernised smelter is expected in 2011.