Rio Tinto Alcan and the Administracion Nacional de Electricidad have signed a Letter of Intention to confirm that they will begin negotiations regarding a power purchase agreement for a potential aluminum smelter in Paraguay.
Under the terms of this agreement, Rio Tinto Alcan will be working with ANDE to develop an energy and development agreement that balances a competitive electricity price for a state of the art aluminum smelter and its contribution to Paraguay's social and industrial development priorities.
Mr Sandeep Biswas senior VP Business Development and Growth of Rio Tinto Alcan said that "We are very pleased to be taking this first step towards a project that would further both our goal of investing in top tier projects and Paraguay's desire for sustainable economic development. This potential aluminum smelter project would benefit from both our clean, efficient, world-class technology and our expertise in sustainable development. Our leading technology and production processes are respected throughout the industry."
Mr Biswas said that "Safety, environment and ethical business practices are key commitments at Rio Tinto Alcan. Our operations would seek to contribute to long term employment and industrial development in Paraguay."
Rio Tinto Alcan is the global leader in the aluminium industry. Its operations in Latin America include shares in both the Porto Trombetas bauxite mine and Alumar refinery in Brazil. Rio Tinto's regional experience includes a 30 per cent share of Escondida, the world's largest copper mine, in Chile and development of the wholly-owned La Granja copper project in Peru.