Major Quebec aluminum smelter announces $1.5B investment with new electricity deal

The company operating a major Quebec aluminum smelter says it will invest at least $1.5 billion in its North Shore facilities over the next 20 years.

Representatives of Aluminerie Alouette say the announcement is tied to an agreement in principle with the province’s hydro utility on electricity rates until Dec. 31, 2045.

At a news conference in Sept-Îles, Que., the company said it has committed to investing $750 million by 2030, for a total of at least $1.5 billion by 2045.

Quebec Premier François Legault told the news conference the electricity deal is a positive sign for an industry that has been hit by 50 per cent tariffs on imports to the U.S.

The government says the agreement allows Hydro-Québec to share in the profits when aluminum prices are high, and permits the company to stay competitive when market prices for the metal drop.

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The smelter employs approximately 950 people and has an annual production capacity of 630,000 tons of aluminum, representing 20 per cent of the aluminum produced in the province.

Multinational Rio Tinto is the main shareholder with a 40 per cent stake in the company.