January 31, 2008 -- PERTH, Jan 31 Asia Pulse - Rio Tinto Alcan (ASX:RIO) has announced a $US90 million ($A101.5 million) investment in the modernisation of its Lochaber aluminium production plant in Scotland.

The modernisation project is scheduled to begin next year and should be completed by 2012.

It will involve the installation of new hydroelectric turbo-generators to power the smelter.

Rio Tinto Alcan primary metal president Jacynthe Cote said the investment not only secured the plant's future but demonstrated the company's commitment to improving energy efficiency, increasing the usage of fully renewable energy and in turn, its levels of production.

Ms Cote said 36 per cent of the company's smelter energy needs were met by self-generated hydroelectricity.

The existing hydro generators at the Lochaber aluminium plant have been in use since their installation in 1929.

As a result of increased power generation, it is expected that aluminium production at Lochaber will increase from 43,000 tonnes per year to 50,000 tonnes per year.

Rio Tinto Alcan, created in November last year, holds the number one position in bauxite and aluminium production, and is a major producer of alumina.

(AAP)

Source: Asia Pulse