The shifting tides of international trade and climate volatility have presented serious challenges to Rio Tinto鈥檚 BC Works operation, but general manager Simon Pascoe says the smelter remains firmly committed to Kitimat and the surrounding region, both as an economic driver and a long-term community partner.
鈥淥ne of the things I can share with confidence is our fundamental strength and how well-positioned we are at BC Works,鈥� Pascoe said during the Kitimat Chamber of Commerce annual general meeting on April 10.
Speaking to local business leaders, Pascoe said the company has spent recent months navigating complex international conditions鈥攑articularly sudden shifts in U.S. aluminum tariff policy. The pace and unpredictability of these developments, he explained, have required BC Works to remain agile while relying on the strength of its global network.
He said the company has been closely monitoring the evolving landscape since February and continues to work with governments and stakeholders in both Canada and the United States to pursue constructive outcomes. This, he added, is supported by a highly experienced global team capable of responding quickly to various trade scenarios.
While acknowledging frequent questions about expanding its customer base, Pascoe said diversification is something BC Works has been evaluating, though it remains a longer-term goal. In the meantime, the smelter鈥檚 certified aluminum鈥攑roduced using renewable hydro power from Kemano鈥攃ontinues to be a strong and competitive product on the global market.
Climate risks, he said, have been just as critical as market conditions. Last year鈥檚 record drought pushed the Nechako Reservoir to historic lows, threatening power generation at Kemano and the overall stability of smelting operations. Pascoe described the company鈥檚 access to low-cost hydro power as one of its key competitive advantages.
鈥淲e can鈥檛 operate without power, and we can鈥檛 produce power without water,鈥� he said.
That reliance has led BC Works to focus closely on reservoir management. Pascoe said the company is continuing to balance operational needs with ecological concerns, guided in part by the Water Engagement Initiative. Since 2017, the initiative has brought together more than 40 organizations, including First Nations, to address long-term planning in the Nechako watershed.
鈥淭his community engagement has been an integral part of how we came up with a balanced approach to make sure we could protect the reservoir for the long term while also maintaining enough production to meet our targets,鈥� he said.
Recent rainfall helped ease some of the pressure. The reservoir, Pascoe said, saw an unusual increase in depth during the autumn months鈥攏ormally a period of seasonal decline. This has placed BC Works in a more stable position heading into 2025, though future planning remains cautious.
Infrastructure and sustainability upgrades were another focus of BC Works鈥� operations in 2024, aimed at improving efficiency, ensuring long-term stability, and supporting the smelter鈥檚 environmental goals. Among the most significant projects was a $24 million replacement of the bath mill, a critical component in the recycling of spent materials used in aluminum production. The complex upgrade, completed ahead of schedule, improved operational reliability while reducing maintenance needs.
Work also continued on overhauling the alumina conveyor system, with foundation work and new structural supports underway to improve material handling and reduce energy consumption. Pascoe said the improvements will enhance worker safety and operational performance when the system comes online in 2025.
In tandem with industrial upgrades, BC Works also carried out key maintenance at the Kenney Dam and Skins Lake Spillway, vital structures that regulate water flow from the Nechako Reservoir and supply hydroelectric power to the smelter. These works included underwater inspections, structural resurfacing, and reinforcements to extend the lifespan of critical infrastructure.
These capital investments, Pascoe noted, not only support Rio Tinto鈥檚 commitment to operational excellence but also form part of a broader strategy to secure the long-term sustainability of BC Works in Kitimat.
Labour stability is also on the horizon. With the current collective agreement set to expire in July, Pascoe acknowledged the significance of the upcoming negotiations. He referred to the 2021 disruption, which affected both operations and the broader community, and expressed optimism about a smoother process this time.
鈥淭his year we are striving to ensure that our negotiations are uneventful and go smoothly,鈥� he said. 鈥淲e鈥檙e looking forward to an open and transparent negotiations process with the Union, cultivating a one-team approach for the long-term prosperity of BC Works and Kitimat.鈥�
BC Works' broader impact was outlined in the 2024 Communities and Social Performance report, which showed more than $490 million contributed to British Columbia鈥檚 economy last year through wages, procurement and taxes. Of that, $240 million was spent across the provincial supply chain, including $77 million in Northwest B.C. and $11 million with Indigenous-affiliated suppliers. The company also invested $1.9 million in community initiatives, supporting programs in education, sustainability and social equity.
Pascoe said this shift toward long-term strategic partnerships is already making a difference. 鈥淩ecently, Rio Tinto made the decision to change how it invests in the communities, to move toward strategic partnerships and support initiatives that will have long-lasting benefits. Our local team has surpassed every milestone in making sure our investments follow this new direction.鈥�
He added that the operation鈥檚 economic role extends beyond direct employment. 鈥淐hances are good that everyone in this room knows someone who works or has worked with us, either as a direct employee or as a contract partner,鈥� he said. 鈥淥ur Local and Indigenous procurement portal gives us even more ways to connect with potential contract partners, letting us build on the relationships we have with locally owned businesses.鈥�
Pascoe closed with a call for collective resilience. 鈥淭he real power, the real strength in an organization like this one, is the way you lift each other up, share ideas, celebrate successes, and troubleshoot challenges together,鈥� he said.
