Alcan pleased with British Columbia Supreme Court decision



    Alcan calls for renewed cooperation with District of Kitimat

    VANCOUVER, March 29 /CNW Telbec/ - Alcan is pleased with the decision
rendered yesterday by the Supreme Court of British Columbia dismissing the
District of Kitimat's 2005 petition. The judgement concludes that there are no
restrictions on the Company's use or sale of Kemano power in the legislation
or agreements with the Province of British Columbia.
    "Alcan is very encouraged with yesterday's decision, and we invite the
whole northwestern community to join us in building a climate for economic
prosperity through the Kitimat modernization project. We must still meet the
conditions required for final approval of the US$1.8 billion project, but the
court's decision is a step forward in ensuring the sustainability of our
operations in British Columbia", said Michel Jacques, President and CEO of
Alcan Primary Metal Group.
    Alcan has sold clean and renewable power generated at the Company's
Kemano power plant since the 1950's and BC Hydro recognizes Kemano power as an
important resource to support the electricity needs of the BC northcoast
region. In dismissing the District's court petition, Chief Justice Donald
Brenner of the B.C. Supreme Court stated that, "I conclude that neither the
Industrial Development Act nor the 1950 Agreement contain language that would
restrict Alcan in the decisions it chooses to make with respect to the sale of
hydro-electric power generated at Kemano. Specifically, there is nothing in
either instrument that would require Alcan to maintain any specific production
level at the Kitimat smelter. Alcan is not restricted by either instrument
from selling its Kemano power or using it for the Kitimat smelter as it
considers appropriate."
    Alcan has been consistent in saying that it is in full compliance with
all of its legal agreements and permits including the 1950 Agreement. The
Attorney General of British Columbia concluded in 2003 that Alcan's activities
are consistent with its legal obligations under the various arrangements that
led to the development and operation of the Kitimat smelter and the related
hydro-electric facilities. The Haisla First Nation, who asserts that the
Kitimat-Kemano region is part of their traditional territories, intervened in
the court proceedings to support the position taken by Alcan and the Province.
    "The legal proceedings and public debate surrounding this issue have
created uncertainty for local investment and have been challenging for Alcan's
employees and the community as a whole. We now look forward to more
constructive pursuits with the District of Kitimat to ensure the realization
of this important investment together," added Jean Simon, President, North
America, Alcan Primary Metal Group.

    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.

    %B M %C 1,3,17 %D BC Supreme Court Verdict




For further information:

For further information: Media Contact: Colleen Nyce, (250) 615-6574,
colleen.nyce@alcan.com; Anik Michaud, (514) 848-8151,
media.relations@alcan.com; Investor contact: Simon Ellinor, (514) 848-8368,
investor.relations@alcan.com

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