MONTREAL, April - Alcan announced today that it is beginning the engineering for the construction of a new high-efficiency turbine at its Shipshaw power generating station in the Saguenay region of Quebec. The new turbine will eventually replace an older, less-efficient machine. This project represents an investment of approximately US$130 million and is part of the US$1.8 billion commitment announced last December.

"The construction of this new turbine for the generation of clean renewable energy, is in keeping with our strategy for profitable growth as it further leverages Alcan's strong power position," stated Michel Jacques, President and CEO, Alcan Primary Metal Group. "The new, 225 megawatt turbine will allow us to use our existing water resources more efficiently and to supply additional backup peaking capacity to Hydro-Québec, as agreed in our December commitment with the provincial government," he added.

The first step in this project, representing approximately $US 13 million, is to carry out the technical studies and preliminary engineering required for the construction. Once the first phase is complete, construction should begin in the first quarter of 2009, with the new turbine coming on-line in the first quarter of 2013. The Shipshaw generating station was built in 1943. It has an installed capacity of 896 megawatts.

Alcan Inc. (NYSE, TSX: AL) is a leading global materials company, delivering high quality products and services worldwide. With world class technology and operations in bauxite mining, alumina processing, primary metal smelting, power generation, aluminum fabrication, engineered solutions as well as flexible and specialty packaging today's Alcan is well positioned to meet and exceed its customers' needs. Alcan is represented by 68,000 employees, including its joint ventures, in 61 countries and regions, and posted revenues of US$23.6 billion in 2006. The Company has featured on the Dow Jones Sustainability World Index consecutively since 2003. For more information, please visit: www.alcan.com.

Rio Tinto Alcan

Rio Tinto Alcan

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.

More from Rio Tinto Alcan