March 30 (Bloomberg) -- Alcoa Inc. agreed to invest $42 million to prepare for the upgrade of a smelter at its Massena, New York, aluminum plant, as part of a long-term power supply accord with the New York Power Authority.
The largest U.S. aluminum producer also will provide $10 million for a North Country Economic Development Fund, New York Governor Andrew Cuomo said in a statement. The agreement is expected to help keep at least 900 jobs at the site, the governor said.
The project is awaiting approval from the U.S. Environmental Protection Agency, which put forth a plan for cleanup of the Grasse River. The decision is expected next month, the governor’s office said.
As part of a long-term power supply agreement with NYPA in 2008, Alcoa must invest at least $600 million to modernize the Massena operations, the statement said. Alcoa agreed to set up the fund to boost economic development in New York’s St. Lawrence, Franklin, Essex, Jefferson, Lewis, Hamilton and Herkimer counties as well as on the Akwesasne Mohawk reservation.
The new power contract will begin January 2014, and extends to 2045, with a 10-year option to extend service, Cuomo said in the statement.
Massena is about 400 miles (643 kilometers) north-northwest of New York City on the border with the provinces of Ontario and Quebec.
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