The history of Alcan and the city of Kitimat it spawned has been, to put it mildly, spotted. The idea behind the original massive environmental disaster was to allow Alcan to reverse rivers, build lakes, install pipes and generators, construct dams, and run roughshod over the rights of First Nations in order to supply electricity to its new aluminum smelter and the “vicinity of the works” (if they had any left over after their aluminum smelting needs were met). The original agreement as enshrined in legislation was for an aluminum smelter, not a power company.

Over the years, in cahoots with the provincial government, Alcan did in fact become a power company - a big one - and its interest in smelting faded as the power dollars rolled in.

When I was part of the large group fighting Kemano II back in the 90s Alcan promised that this power was going to fuel a new smelter as well as the one in Kitimat … or was it two new smelters? Or perhaps four? It was difficult to keep count. As the struggle continued I was under considerable pressure from Kitimat and elsewhere to butt out - that Alcan was their buddy and would always keep its workers and their families close to their warm heart. The City Council of Terrace, which would have supplied much of the labour and equipment for Kemano II, passed a resolution declaring Terrace to be a “Rafe Mair free zone.”

One morning I interviewed Bill Rich, an Alcan VP who was quarterbacking Kemano II, and I got this usually taciturn executive to pound his fist on the table and say “you don’t seem to understand that Alcan is not in the Aluminum business … it’s in the power business!” In anger, veritas!

To cut to the chase, it began to dawn on the people of Kitimat that the smelter was shutting down lines, that Alcan was neglecting maintenance and modernization. And where were all those new smelters?

In 2002 The Kitimat Council reluctantly concluded:

1. Alcan is now in a position whereby it would be contrary to shareholder value for the firm to invest in aluminum in BC.
2. It is contrary to Alcan’s shareholder value to remain in aluminum production in BC.
3. Alcan will therefore minimize aluminum production in BC and maximize power.

So Kitimat, reading the original agreement and legislation, went to court maintaining, quite reasonably, that Alcan was doing much more than creating power for “the works and the vicinity” and that victory was a slam dunk.

Ah, but you see, these things can get a bit tricky. Alcan and the government of BC said that the only people that can have “standing” to sue on a contract are those who made that contract, namely the province and Alcan. In short, since the province of BC was into this skullduggery up to its eyeballs it wasn’t going to sue - so tough titty, Kitimat!

Kitimat got some solace from a 2006 decision of the BC Utilities Commission which found that a $2 billion "sweetheart" deal between B.C. Hydro and Alcan - where Alcan could generate power for $5 a megawatt hour, and sell it to BC Hydro (that’s us folks) for $71 - was just a bit too sweet.  Revelations amid the proceedings that Gordon Campbell owned Alcan stock may also have helped to torpedo that deal.  So Alcan and Hydro tried again and in 2007 did another “not quite so sweet a deal" - this one approved by the BCUC.  But trouble was lurking in the form of men and women in black robes and a very persistent First Nation...

As mentioned, the Carrier Sekani First Nation had been screwed at every turn by Alcan which, back in the 50s, flooded its land including their graveyards using agreements that Elders of that day who, not speaking English, signed with Xs, it being later determined that the Xs were all done by one man, probably the Indian agent.

Well, last week the Carrier Sekani won and won big in the BC Court of Appeal, which held there was "massive" infringement” of the right of the Carrier Sekani Tribal Council to be consulted in the Kemano Power Project and later expansion near Kitimat that involves B.C. Hydro buying electricity from the Rio Tinto Alcan Inc. aluminum smelter. The court also found "B.C. Hydro, as a Crown corporation, was taking commercial advantage of an assumed infringement on a massive scale, without consultation."

Wow! What does this mean? Is the entire Kitimat deal back to 1950 up for review? That claim, opened up and fairly decided could wipe out Rio Tinto who owns Alcan now and has a lot of other financial unpleasantness on its hands – to say nothing of what could happen to taxpayers...  

What does that do to that “not quite so sweet” deal between Alcan and BC Hydro (remember, that’s us folks)?

The case will, no doubt, go to the Supreme Court of Canada but, as you may have noticed, First Nations are doing rather well in that august body these days.

What does this mean for Campbell’s energy and rivers giveaway to private interests without any consultation with the voting public? What does it mean for license applications and for license holders? Hard to say.

What is for sure is that the Campbell Government has concocted a huge screw up which will likely cost the taxpayers billions, demonstrating that the Liberal/Alcan lovey dovey relationship which resulted both in the above court case and Campbell’s energy giveaway plan - which was for all intents and purposes written by Alcan and other major private power players - together are such a horrendous calamity that all the evils of other governments past pale into insignificance.

Surely the voters of this province will deal appropriately with this wicked regime at the ballot box on May 12th next.

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