VANCOUVER — Alcan Inc. says it is “pleased” with a B.C. Supreme Court decision to dismiss the District of Kitimat's 2005 petition to restrict power sales from the Kemano power plant.

The court ruled there are no restrictions on the company's use or sale of Kemano power in the legislation or agreements with British Columbia related to the Kitimat aluminum smelter.

“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,” Michel Jacques, CEO of Alcan's Primary Metal Group, said in a release Thursday

“We must still meet the conditions required for final approval of the $1.8-billion (U.S.) project, but the court's decision is a step forward in ensuring the sustainability of our operations in British Columbia.”

Alcan has sold power generated at the company's Kemano plant since the 1950s and British Columbia Hydro and Power Authority has said it recognizes Kemano power as an important resource to support the electricity needs of the B.C. north-coast region.

In dismissing the petition, Chief Justice Donald Brenner stated: “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 argued 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 were consistent with its legal obligations under various arrangements that led to development and operation of the Kitimat smelter and the related hydro-electric facilities.

Kitimat Mayor Richard Wozney and council were frustrated by the province's stance and the court's ruling.

“We are trying to make sure the benefits of our public resources go to British Columbians,” Mr. Wozney said in a statement.

“If the provincial government had stood up for the use of this raw material in a value-added and profitable industry, the outcome surely would have been different. Why are they giving away our resources to multinationals?”

The Haisla First Nation, which argues that the Kitimat-Kemano region is part of its traditional territories, intervened in the court proceedings to support 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,” said Jean Simon, North American president of the primary metal group.

Alcan has global operations in bauxite mining, alumina processing, primary metal smelting, power generation, aluminum fabrication. The company has 68,000 employees, including its joint ventures, in 61 countries and regions, and posted revenue of $23.6-billion in 2006.