TORONTO (miningweekly.com) – Rio Tinto Alcan, which operates several alumina and aluminium smelters and a refinery in Quebec, on Thursday said Quebec had an opportunity to secure its position as a leading aluminium producer in the world if it lowered its electricity tariffs to more competitive levels.

Rio Tinto Alcan primary metal North America COO Étienne Jacques said that at the current energy prices, over three-quarters of the world's aluminium smelters benefited from rates that were lower than Hydro-Québec's rate for large industrial users.

The company recommended that energy prices be made more competitive to bolster the growth of the local aluminium industry.

During the public consultation on energy issues in Quebec, the company proposed that Quebec's new energy policy would need to affirm the province's resolution to offer competitively priced energy for the growth of its manufacturing sector, including the aluminium industry, which is a critical economic driver.

Rio Tinto Alcan believed that Quebec's new energy policy should 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.

"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. 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,” primary metal president and CEO Arnaud Soirat said.

He pointed out that the company had actively participated in several objectives set out in the consultation paper on energy issues in Quebec. For example, on greenhouse-gas (GHG) emissions, Rio Tinto Alcan exceeded the reduction targets set out in the Kyoto Protocol.

Since 1990, Rio Tinto Alcan's aluminium production had increased by 50%, and its GHG emissions were halved. The company said that a competitive energy price was one of the determining factors for attracting new investments, but it would also encourage aluminium production with the world's lowest GHG emissions levels.

In terms of energy efficiency, Rio Tinto Alcan's efforts had earned the company distinction as an elite member of Hydro-Québec's Energy Savers' Circle.