Considering US$900 Million to upgrade and expand the Alucam smelter and
    construct a new hydroelectric power station

    MONTREAL, Canada, Oct. 26 /PRNewswire-FirstCall/ - Alcan Inc. (NYSE, TSX:
AL), in partnership with the Government of Cameroon, announced today that the
parties have signed a Letter of Intent (LOI) for the potential upgrade and
expansion of their joint-venture Alucam primary aluminum smelter to an
approximate 260kt/year capacity and for the construction of a new
hydroelectric power station at a total estimated cost of US$900 million. The
Government of Cameroon and Alcan each own 46.7 percent of Alucam.
    "This LOI allows Alcan and its Cameroonian partners to launch technical
studies, environmental impact assessments and a stakeholder consultation
process to determine the feasibility of this promising project, in accordance
with internationally recognized standards," said Cynthia Carroll, President
and Chief Executive Officer, Alcan Primary Metal Group. "The project would
have social, economic, and environmental benefits for all stakeholders,
including the opportunity to harness Cameroon's natural resources, in keeping
with Alcan's principles of sustainability, and producing aluminum at a highly
competitive cost," she added.
    Under this project, the Alucam smelter's current capacity of 90kt/year
would be increased to approximately 260kt/year, through upgrades to the
existing potline (20kt/year) and the construction of a second potline
(150kt/year). This would represent an increase of approximately two percent in
Alcan's current annual capacity of almost 3.5 million tonnes.
    "Cameroon also possesses significant bauxite deposits, the key raw
material that is refined into alumina to produce aluminum. The LOI also allows
for a two year exclusivity period to conduct studies regarding bauxite
quality, quantity and accessibility, which ultimately would guide our
decisions regarding their potential development," said Jacynthe Cote,
President and Chief Executive Officer, Alcan Bauxite and Alumina.
    During constructive discussions, Alcan and the Government of Cameroon
agreed on a set of prerequisite conditions that would need to be in place in
order for this project to be realized. If such conditions are in place and
findings of the various studies are positive, Alcan and the Government of
Cameroon could proceed with the upgrade and expansion of Alucam as well as the
construction of the power station to support the expansion.
    The feasibility of the project will require the construction of the Lom
Pangar dam by the Government of Cameroon. Above fulfilling the project's
electricity requirements, the Lom Pangar dam will contribute to increasing the
overall electricity available to Cameroon.
    Alcan plans to complete all of the necessary technical studies to assess
the scope of these projects over the next 12 months, and is expected to make a
decision in the course of 2006.
    The Alucam site employs 750 people and is located in Edea, in southern
Cameroon.

    Alcan is a multinational, market-driven company and a global leader in
aluminum and packaging. With world-class operations in primary aluminum,
fabricated aluminum as well as flexible and specialty packaging, aerospace
applications, bauxite mining and alumina processing, today's Alcan is well
positioned to meet and exceed its customers' needs for innovative solutions
and service. Alcan employs approximately 70,000 people and has operating
facilities in 55 countries and regions.

    Statements made which describe the Company's intentions, expectations or
    predictions may be "forward-looking statements" within the meaning of
    securities laws. By their nature, forward-looking statements involve risk
    and uncertainty; the Company's actual results could differ materially
    from those expressed or implied in such forward-looking statements.

Link to this page: