CAN Alumysa and SAVE Patagonia – March 12th – 26th, 2004

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To :

Dale.Coffin@toronto.norfalc.com, Derek.Pannell@toronto.norfalc.com, robert.telewiak@toronto.norfalc.com

Subject :

CAN Alumysa and SAVE Patagonia

April 26th 2004<br />
                        Derek Pannell<br />
                        President and Chief Executive Officer<br />
                        Noranda Inc.<br />
                        207 Queen's Quay West, Suite 800<br />
                        Toronto, ON  M5J 1A7<br />
                        Fax: (416) 982-7423<br />
                        Dear Mr. Pannell:<br />
                        We are writing to ask you to publicly commit to definitively canceling Noranda Inc.'s proposed Alumysa aluminum smelter in the Aysén region of Chile and anywhere in the rest of Patagonia.<br />
                        Over eight months ago, on August 18th, Noranda withdrew its Environmental Impact Study (EIS) from COREMA, the regional Chilean environmental authority that is responsible for reviewing the EIS. COREMA said that this withdrawal signaled a temporary suspension of activities related to the project.<br />
                        The withdrawal was apparently in response to a sudden perceived "change in the rules of the game" after Chilean President Ricardo Lagos suggested a new location for the project other than Chacabuco bay. The President cited concerns about the proximity of the plant to nearby salmon fishing areas. The Aysén Life Reserve Alliance highlighted the potentially irreparable damage to the region's world-renowned pristine forests and unique ecosystem, and their own plans for developing the economy through eco-tourism, organic livestock rearing and sustainable fishing. Noranda in response said it would not reactivate the project until the government clarified its position, but said that relocation would be impossible. President Lagos, for his part, asked Ministers Francisco Huenchumilla, General Secretariat of the Presidency, and Jorge Rodriguez, Minister of Economy and Energy, to 'find a solution' for Alumysa.<br />
                        Regardless of what the government decides in terms of relocation, we would like to take this opportunity to remind Noranda that countless residents, organizations and sectors of Chilean society, for a number of different reasons, do not want Alumysa in Patagonia.<br />
                        Eight months have passed since Noranda decided to withdraw its EIS, and it has yet to clarify its intentions in relation to the Alumysa project.<br />
                        Therefore, we urge you at this year's Annual General Meeting in Toronto, to publicly state your intention to cancel the project - for the sake of the Chilean public, all of the communities potentially affected by this project, and citizens of the world who have an interest in preserving the Patagonia's unique nature.<br />
                        Yours sincerely,

For further information on Alumysa, please click here.

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