A long-term power supply agreement is essential
Sept-Iles, February 5, 2025 - Nearly 35 years after starting operations, Aluminerie Alouette is now undertaking major modernization and decarbonization projects. Its shareholders are prepared to invest $1 billion in the Sept-Iles facilities in the coming years. Securing the long-term supply of electricity to the smelter, whose contract expires in 2029, is an essential element in the realization of these investments.
Electricity is an essential raw material for aluminum production. In the region, men and women proudly produce this veritable "grey gold" day after day, using Québec hydroelectricity. With one of the lowest carbon footprints in the world, Alouette’s aluminum generates significant economic, social and environmental benefits for the entire community.
The current rate agreement with Hydro-Québec and the Quebec government, which took effect in 2017, will conclude in 2029. "When planning investments of this magnitude, it's essential to have a longer timeframe. Therefore, we are working towards a mutually beneficial agreement for many years to come," confirms President and CEO Claude Gosselin. "We are not requesting a reduction in our current electricity rates; we fully understand that our bill will be adjusted upwards," he adds.
In a time when the geopolitical situation is having a major impact on the economy, Quebec would benefit from the imminent conclusion of an agreement generating hundreds of millions of dollars for local businesses. Renewing the long-term power supply contract would ensure the future of a Quebec flagship for decades. "The future of Aluminerie Alouette, the industry, and our planet relies on decarbonization. Several projects are in the pipeline, but we must secure our competitiveness on the global market before moving forward with concrete action," emphasizes Mr. Gosselin.
Aluminerie Alouette generates economic benefits exceeding $440 million in Quebec, with $340 million specifically in the Sept-Rivières RCM. The company sources from 700 suppliers, including 250 in the region, and makes annual local purchases of approximately $100 million. As an exemplary corporate citizen actively involved in its community, Aluminerie Alouette creates quality jobs and wealth both in its region and throughout the province.
About Aluminerie Alouette
Inaugurated in 1992, Aluminerie Alouette is an independent aluminum producer formed by a consortium comprising AMAG Austria Metall AG (Austria, 20%), Hydro Aluminium (Norway, 20%), Marubeni Metals & Minerals (Japan, 13.33%), QUALIUM (Canada, 6.67%), and Rio Tinto (Canada, 40%). With approximately 950 employees and an annual production capacity exceeding 630,000 tonnes of primary aluminum, it is the largest private employer in Sept-Iles and the largest aluminum smelter in the Americas. The Sept-Iles plant prioritizes sustainable development and innovation in all its operations.
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