Rio Tinto Alcan recommends competitive energy rates to facilitate its growth projects in Quebec

MONTREAL, Oct. 3, 2013 /CNW Telbec/ - Rio Tinto Alcan recommends that energy prices be made more competitive to bolster the growth of the aluminium industry in Quebec. During the Public Consultation on Energy Issues in Quebec, Rio Tinto Alcan proposed that Quebec's new energy policy must affirm the province's resolution to offer competitively priced energy for the growth of its manufacturing sector, including the aluminium industry, a key economic driver for Quebec.

"The growth of the aluminium industry worldwide relies on competitive energy prices, and Quebec has an opportunity to secure its position as a leading aluminium producer in the world," stated Rio Tinto Alcan Primary Metal president and chief executive officer, Arnaud Soirat: "The world's most competitive economies rely on a strong manufacturing sector that fosters employment growth, provides good wages, positively influences the trade balance of an economy, and invests more in research and development than any other sector. In this regard, Rio Tinto Alcan considers the aluminium industry as a long-term strategic choice for Quebec."

Rio Tinto Alcan believes that Quebec's new energy policy must provide a reliable energy supply at a predictable and competitive cost for the industry, which would encourage the company's continued contribution to the economic development of its host regions and communities, and for the entire province over the long term.

Étienne Jacques, chief operating officer, Rio Tinto Alcan Primary Metal, North America, added: "At the current energy prices, over three-quarters of the world's aluminium smelters benefit from rates that are lower than Hydro-Québec's rate for large industrial users. For Rio Tinto Alcan, competitive energy for the aluminium industry is one of the key components of sustainable growth."

Rio Tinto Alcan agrees and actively participates in several of the objectives set out in the consultation paper on energy issues in Quebec. For example, on greenhouse gas (GHG) emissions, Rio Tinto Alcan exceeds the reduction targets set out in the Kyoto Protocol. Since 1990, Rio Tinto Alcan's aluminium production has increased by 50 per cent while its GHG emissions were reduced by 50 per cent. A competitive energy price is one of the determining factors for attracting new investments, but it would also encourage production of aluminium with the world's lowest GHG emissions levels. In terms of energy efficiency, Rio Tinto Alcan's efforts have earned the company distinction as an Elite Member of Hydro-Québec's Energy Savers' Circle. Aluminium is also an integral part of the solution for the electrification of transportation most notably in the automotive sector.

The report submitted to the Commission on Energy Issues in Quebec by Rio Tinto Alcan is available on-line at the following address:
http://www.riotintoalcan.com/documents/MemoireRioTintoAlcanFINAL.pdf

About Rio Tinto

Rio Tinto is a leading international mining group headquartered in the UK, combining Rio Tinto plc, a London and NYSE listed company, and Rio Tinto Limited, which is listed on the Australian Securities Exchange.

Rio Tinto's business is finding, mining, and processing mineral resources. Major products are aluminium, copper, diamonds, energy (coal and uranium), gold, industrial minerals (borax, titanium dioxide, salt, talc) and iron ore. Activities span the world but are strongly represented in Australia and North America with significant businesses in South America, Asia, Europe and southern Africa.

SOURCE: RIO TINTO ALCAN - EN

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