MONTREAL, Dec. 21 /PRNewswire-FirstCall/ - Alcan Inc. (NYSE, TSX: AL)
announced today that it will proceed with an investment of approximately
US$129 million for its participation in the 2.1 million metric tonne per year
(Mtpy) expansion of the Alumar consortium alumina refinery in Sao Luis, State
of Maranhao, Brazil. The expanded refinery, in which Alcan has a 10 percent
stake, will have a total capacity of approximately 3.5 Mtpy once completed.
    "This investment is fully aligned with Alcan's value maximization
strategy, which involves growing alumina revenues through the expansion of
large-scale, cost-advantaged assets," said Jacynthe Cote, President and Chief
Executive Officer, Alcan Bauxite and Alumina. "With increasing global demand
for alumina, this investment will boost Alcan's access to a competitive source
of alumina in the Atlantic region," Cote added.
    The Alumar refinery is already best-in-class in terms of conversion
costs, and also has an excellent track record in the area of sustainability,
including environment, health and safety. "Its superior performance in these
areas is closely aligned with Alcan's commitment to pursue business
opportunities that strengthen Alcan's ability to provide a prosperous and
sustainable environment for future generations," continued Cote.
    The expansion, which will begin operation in the first half of 2008, will
increase Alcan's overall alumina capacity by 210 thousand tonnes per year.
With Alcan, the Alumar refinery is jointly owned by Alcoa (54 percent) and BHP
Billiton (36 percent).

    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 almost 70,000 people and has operating facilities
in 55 countries and regions.

    Statements made in this press release which describe the Company's
intentions, expectations or predictions may be forward-looking statements
within the meaning of securities laws. The Company cautions that, by their
nature, forward-looking statements involve risk and uncertainty and that the
Company's results could differ materially from those expressed or implied in
such statements. Reference should be made to the most recent Form 10-Q for a
summary of major risk factors.

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