Alcoa threatens to close Quebec smelters over hydro hikes

Premier Pauline Marois says the Alcoa aluminum company's threats to close down its Quebec facilities over proposed electricity hikes are "alarmist" and unecessary.

This week, Alcoasent a letter to its unions stating that it was prepared to shut down three of its Quebec operations ifHydro-Qubecinsists on increasing rates in 2015.

The company has been purchasing its power from Hydro-Qubec at a preferential rate, which is expected to rise by more than one cent per killowatt hour, or about 50 per cent overall.

The company said the increase would add 60 per cent to the cost of producing aluminum.

The company employs more than 3,000 workers at its aluminum smeltersin Baie-Comeau, Deschambault and Bcancour.

Marois says Alcao 'isn't going anywhere'

Premier PaulineMaroisresponded to Alcoa's plans on Wednesdayand said she was surprised by Alcoa's reaction.

"I find their tone needlessly alarmist," she said.

Marois said high-ranking members of hergovernment arein the process ofnegotiating with the company.

"It's a major industry that's very important for Quebec. It has been here for a long time, and it isn't going anywhere."

Minister of Natural ResourcesMartineOuelletwould not specify whether the government would continue offering the company reduced electricity rates.

But Ouelletdid point out thatfrom a global point of viewAlcaois paying a fair price for its power.

"The price of electricity in Quebec for thealuminum plant is right in the middle of the price worldwide ...and also we have green electricity which is really important too, shesaid.