Rio Tinto Alcan is forging ahead with a $2.5-billion rebuild of its Kitimat aluminum smelter in Northern B.C., which is expected to provide benefits throughout the region as far east as Prince George.
The project had been held up during the global financial crisis two years ago, but the company is gearing up to get construction of the mega-project into full swing.
Rio Tinto Alcan held a contractor meeting in Vancouver this week to garner interest in the project, where contractors from Northwest B.C. were given space in booths to showcase their capabilities. A trio of contractor meetings have already been held in Northwest B.C., with more expected.
"The main purpose was to sell the project, to make sure everyone understands this project is very serious. This project is going to happen," said Michel Lamarre, project director for the Kitimat modernization.
"We have already committed $650 million. We are spending $300 million this year. So, it does show the confidence the company has in this project," Lamarre said Thursday.
The request-for-proposal tenders for major chunks of the project - for concrete and structural steel - are expected to go out by the end of the summer.
The project does need final sign off from Rio Tinto Alcan's board of directors, which will likely come this fall, said Lamarre.
Built in the 1950s, the smelter will be torn down and a new plant will be built. It will upgrade the aluminum smelting technology and nearly double capacity to 420,000 tonnes a year from 280,000 tonnes.
The project will need about 2,000 workers, about 1,500 who can be housed in a camp, which is already under construction.
The modern facility will need fewer permanent workers, a reduction to a workforce of 1,000 from 1,400. However, for the first time, the plant will use almost all of the power normally generated by the Kemano hydro-electric facility. Water that normally would flow in the Fraser River is diverted to Kemano from the Nechako Reservoir created by a dam south of Vanderhoof, near Prince George.
Jobs, Tourism and Innovation Minister Pat Bell expects the work and economic spinoffs generated by the project to have a positive impact on Northern B.C., including Prince George.
Bell, who opened the contractor forum, said the project was the largest private sector investment in Northern B.C. in a long time. "I think it bodes well for the future of Northern B.C. in terms of the willingness to invest," he said.
Bruce Sutherland, owner of Prince George-based WolfTek, a fabricating shop, said resumption of the mega-project was all good news. Sutherland noted that before the recession hold-up, Rio Tinto Alcan representatives met with WolfTek and other firms in Prince George about contract opportunities. "It will definitely have an impact here," he said.
However, Sutherland injected a word of caution, saying he's concerned that, coupled with other major projects, the North will face a skilled trades shortage. While it's a good problem to have, it will require a solution that may include opening the door to temporary foreign workers, he said.
Thompson Creek Metals has started construction on the $1.3-billion gold and copper mine northwest of Prince George. The $404-million Northwest Transmission Line has also been given the greenlight, which could lead to more mines and independent power projects.
The $7.9-billion Site-C dam is also on the books, as well as Enbridge's $5.5-billion oil pipeline and a the Kitimat LNG $4-billion liquified natural gas plant and pipeline.
