<PAGE>
                                                                  EXECUTION COPY

                                                      (METAL SUPPLY AGREEMENT #2
                                                                   MOLTEN METAL)

                                                                    EXHIBIT 10.3

                          MOLTEN METAL SUPPLY AGREEMENT

                                     between

                                  NOVELIS INC.

                                 (as Purchaser)

                                       and

                                   ALCAN INC.

                                  (as Supplier)

      FOR THE SUPPLY OF MOLTEN METAL TO PURCHASER'S SAGUENAY WORKS FACILITY

           DATED JANUARY 5, 2005, WITH EFFECT AS OF THE EFFECTIVE DATE
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                                TABLE OF CONTENTS

<TABLE>
<S>  <C>                                                                      <C>
1.   DEFINITIONS AND INTERPRETATION........................................    1
2.   MOLTEN METAL..........................................................    7
3.   FORCE MAJEURE.........................................................   11
4.   ASSIGNMENT............................................................   13
5.   TERM AND TERMINATION..................................................   14
6.   EVENTS OF DEFAULT.....................................................   15
7.   REPRESENTATIONS AND WARRANTIES........................................   16
8.   CONFIDENTIALITY.......................................................   16
9.   DISPUTE RESOLUTION....................................................   16
10.  MISCELLANEOUS.........................................................   16
</TABLE>

SCHEDULES

1    Contract Tonnage and Estimated Weekly Shipping Schedule for Contract Year 1

2    Saguenay Smelters
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                          MOLTEN METAL SUPPLY AGREEMENT

THIS AGREEMENT entered into in the City of Montreal, Province of Quebec, is
dated January ___, 2005, with effect as of the Effective Date.

BETWEEN:   NOVELIS INC., a corporation incorporated under the Canada Business
           Corporations Act ("NOVELIS" or the "PURCHASER");

AND:       ALCAN INC., a corporation organized under the Canada Business
           Corporations Act ("ALCAN" or the "SUPPLIER").

RECITALS:

WHEREAS Alcan and Novelis have entered into a Separation Agreement pursuant to
which they set out the terms and conditions relating to the separation of the
Separated Businesses from the Remaining Alcan Businesses (each as defined
therein), such that the Separated Businesses are to be held, as at the Effective
Time (as defined therein), directly or indirectly, by Novelis (such agreement,
as amended, restated or modified from time to time, the "SEPARATION AGREEMENT").

WHEREAS the Supplier wishes to supply, and the Purchaser wishes to purchase,
subject to the terms and conditions of this Agreement, Molten Metal (as defined
below) required by the Purchaser at the Purchaser's Saguenay Works facility.

WHEREAS the Parties have entered into this Agreement in order to set forth such
terms and conditions.

NOW THEREFORE, in consideration of the mutual agreements, covenants and other
provisions set forth in this Agreement, the Parties hereby agree as follows:

1.   DEFINITIONS AND INTERPRETATION

1.1  DEFINITIONS

     For the purposes of this Agreement, the following terms and expressions and
     variations thereof shall, unless another meaning is clearly required in the
     context, have the meanings specified or referred to in this Section 1.1:

     "AFFECTED PARTY" has the meaning set forth in Section 3.1.

     "AFFILIATE" of any Person means any other Person that, directly or
     indirectly, controls, is controlled by, or is under common control with
     such first Person as of the date on which or at any time during the period
     for when such determination is being made. For purposes of this definition,
     "CONTROL" means the possession, directly or indirectly, of the power to
     direct or cause the direction of the management and
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                                      -2-


     policies of such Person, whether through the ownership of voting securities
     or other interests, by contract or otherwise and the terms "CONTROLLING"
     and "CONTROLLED" have meanings correlative to the foregoing.

     "AGREEMENT" means this Molten Metal Supply Agreement, including all of the
     Schedules hereto.

     "ALCAN" means Alcan Inc.

     "ALCAN GROUP" means Alcan and its Subsidiaries from time to time on and
     after the Effective Date.

     "ALUMINUM PRICE" for any calendar month means the arithmetic average LME
     3-Month seller's price for primary high grade aluminum, as published in
     Metal Bulletin on each day during the calendar month preceding such
     calendar month, or as otherwise determined pursuant to Section 2.6(b). As
     an example, the Aluminum Price for the month of April will be based on
     aluminum prices published during the month of March.

     "APPLICABLE LAW" means any applicable law, rule or regulation of any
     Governmental Authority or any outstanding order, judgment, injunction,
     ruling or decree by any Governmental Authority.

     "BASE CONTRACT TONNAGE" means:

          (i)  in respect of Contract Year 1, *** Tonnes;

          (ii) in respect of Contract Year 2, *** Tonnes; and

          (iii) in respect of Contract Year 3 and each subsequent Contract Year,
               *** Tonnes,

     subject to any reduction in accordance with Section 2.4(b).

     "BILL OF LADING DATE" means the date of the bill of lading representing
     Molten Metal cargo to be delivered under this Agreement.

     "BUSINESS CONCERN" means any corporation, company, limited liability
     company, partnership, joint venture, trust, unincorporated association or
     any other form of association.

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      with the Securities and Exchange Commission. Confidential treatment has
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                                      -3-


     "BUSINESS DAY" means any day excluding (i) Saturday, Sunday and any other
     day which, in the City of Montreal (Canada) or in the City of New York
     (United States), is a legal holiday, or (ii) a day on which banks are
     authorized by Applicable Law to close in the city of Montreal (Canada) or
     in the city of New York (United States).

     "COMMERCIALLY REASONABLE EFFORTS" means the efforts that a reasonable and
     prudent Person desirous of achieving a business result would use in similar
     circumstances to ensure that such result is achieved as expeditiously as
     possible in the context of commercial relations of the type contemplated in
     this Agreement; provided, however, that an obligation to use Commercially
     Reasonable Efforts under this Agreement does not require the Person subject
     to that obligation to assume any material obligations or pay any material
     amounts to a Third Party or take actions that would reduce the benefits
     intended to be obtained by such Person under this Agreement.

     "CONSENT" means any approval, consent, ratification, waiver or other
     authorization.

     "CONTRACT PRICE" for each Tonne of Molten Metal sold and purchased
     hereunder in any month shall be:

          (i)  in respect of each month occurring in Contract Year *** to
               Contract Year *** (inclusive), the Midwest Price minus the LME
               Discount, minus the Molten Metal Discount;

          (ii) in respect of each month occurring in Contract Year *** to
               Contract Year *** (inclusive), such price as may be agreed by the
               Purchaser and the Supplier by good faith negotiations during
               Contract Year *** , and in the absence of such agreement, the
               Midwest Price calculated for such month minus the Molten Metal
               Discount; and

          (iii) in respect of each month occurring subsequent to Contract Year
               *** , such price as may be agreed as a result of good faith
               negotiations in connection with any extension of the Term
               pursuant to Section 5.3 hereof.

     Such amount shall be rounded upwards to the nearest Dollar.

     "CONTRACT TONNAGE" has the meaning set forth in Section 2.3(c).

     "CONTRACT YEAR" means (a) initially the period commencing on the Effective
     Date and ending on the last day of the calendar year in which the Effective
     Date occurs (such initial period being "CONTRACT YEAR 1") and (b)
     thereafter, each successive

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      with the Securities and Exchange Commission. Confidential treatment has
      been requested with respect to the omitted portions.
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                                      -4-


     period consisting of twelve calendar months (the first such period being
     "CONTRACT YEAR 2"), provided that the final Contract Year shall end on the
     last day of the Term.

     "CPT" means, to the extent not inconsistent with the provisions of this
     Agreement, CPT as defined in Incoterms 2000, published by the ICC, Paris,
     France, as amended from time to time.

     "DEFAULT INTEREST RATE" means the rate of interest charged by Supplier from
     time to time on late payments in accordance with Supplier's normal
     commercial practice, as indicated on invoices issued by Supplier to
     Purchaser hereunder.

     "DEFAULTING PARTY" has the meaning set forth in Section 6.

     "DELIVERY SITE" means the Purchaser's Saguenay Works facility located at
     2040 Fay Street, Jonquiere, Quebec, Canada.

     "DISPUTES" has the meaning set forth in Section 9.1.

     "DOLLARS" or "$" means the lawful currency of the United States of America.

     "EFFECTIVE DATE" means the "Effective Date" as defined in the Separation
     Agreement.

     "EVENT OF DEFAULT" has the meaning set forth in Section 6.

     "FORCE MAJEURE" has the meaning set forth in Section 3.2.

     "GOVERNMENTAL AUTHORITY" means any court, arbitration panel, governmental
     or regulatory authority, agency, stock exchange, commission or body.

     "GOVERNMENTAL AUTHORIZATION" means any Consent, license, certificate,
     franchise, registration or permit issued, granted, given or otherwise made
     available by, or under the authority of, any Governmental Authority or
     pursuant to any Applicable Law.

     "ICC" means the International Chamber of Commerce.

     "INCOTERMS 2000" means the set of international rules updated in the year
     2000 for the interpretation of the most commonly used trade terms for
     foreign trade, as published by the ICC.

     "LIABILITIES" has the meaning set forth in the Separation Agreement.

     "LME" means the London Metal Exchange.
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                                      -5-


     "LME DISCOUNT" means, (i) for each of Contract Year *** to Contract Year
     ***, inclusive, ***% of the Aluminum Price; (ii) for each of Contract Year
     *** to Contract Year ***, inclusive, such amount as may be agreed by the
     Purchaser and the Supplier as a result of good faith negotiations that
     shall take place in Contract Year ***and, in the absence of such agreement,
     zero (0); and (iii) for any Contract Year from and after Contract Year ***,
     such amount as may be agreed by the Purchaser and the Supplier in good
     faith negotiations in connection with any extension of the Term pursuant to
     Section 5.3.

     "MIDWEST PRICE" for any calendar month means the arithmetic average of the
     mid-west transaction prices for primary high grade aluminum, as published
     in Metals Week on each day during the calendar month preceding such
     calendar month or as otherwise determined pursuant to Section 2.6(b). As an
     example, the Midwest Price for the month of April will be based on metal
     prices published during the month of March.

     "MOLTEN METAL" means P1020 aluminum metal in molten form.

     "MOLTEN METAL DISCOUNT" means, (i) for each of Contract Year *** to
     Contract Year ***, inclusive, $***; (ii) for each of Contract Year *** to
     Contract Year ***, inclusive, such amount as may be agreed by the Purchaser
     and the Supplier as a result of good faith negotiations that shall take
     place in Contract Year ***; in the absence of such agreement, the Molten
     Metal Discount for Contract Years *** to *** shall be the Molten Metal
     Discount for the preceding Contract Year multiplied by a factor equal to
     ***; and (iii) for any Contract Year from and after Contract Year ***, such
     amount as may be agreed by the Purchaser and the Supplier as a result of
     good faith negotiations in connection with any extension of the Term
     pursuant to Section 5.3.

     "NOVELIS" means Novelis Inc.

     "NOVELIS GROUP" means Novelis Inc. and its Affiliates from time to time on
     and after the Effective Date.

     "PARTY" means each of the Purchaser and the Supplier as a party to this
     Agreement and "PARTIES" means both of them.

     "PERSON" means any individual, Business Concern or Governmental Authority.

     "PURCHASER" has the meaning set forth in the Preamble to this Agreement.

     "SAGUENAY SMELTER" means those aluminum smelters of the Supplier identified
     in Schedule 2.

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***   Certain information on this page has been omitted and filed separately
      with the Securities and Exchange Commission. Confidential treatment has
      been requested with respect to the omitted portions.
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                                      -6-


     "SAGUENAY WORKS" means the Purchaser's light gauge rolled products facility
     at Jonquiere, Quebec, Canada.

     "SALES TAX" means any sales, use, consumption, goods and services, value
     added or similar tax, duty or charge imposed by a Governmental Authority
     pursuant to Applicable Law.

     "SEPARATION AGREEMENT" has the meaning set out in the Preamble to this
     Agreement.

     "SPECIFICATIONS" means such specifications for Molten Metal as may be
     proposed from time to time in accordance with Section 2.7.

     "SUBSIDIARY" of any Person means any corporation, partnership, limited
     liability entity, joint venture or other organization, whether incorporated
     or unincorporated, of which a majority of the total voting power of capital
     stock or other interests entitled (without the occurrence of any
     contingency) to vote in the election of directors, managers or trustees
     thereof, is at the time owned or controlled, directly or indirectly, by
     such Person.

     "SUPPLIER" has the meaning set forth in the Preamble to this Agreement.

     "TERM" has the meaning set forth in Section 5.2.

     "TERMINATING PARTY" has the meaning set forth in Section 6.

     "THIRD PARTY" means a Person that is not a Party to this Agreement, other
     than a member or an Affiliate of Alcan Group or a member or an Affiliate of
     Novelis Group.

     "THIRD PARTY CLAIM" has the meaning set forth in the Separation Agreement.

     "TONNE" means 1,000 kilograms.

     "US PPI" means the Producer Price Index for industrial commodities, as
     published monthly by the Bureau of Labor Statistics of the U.S. Department
     of Labor.

1.2  CURRENCY

     All references to currency herein are to Dollars unless otherwise
     specified.

1.3  VIENNA CONVENTION

     The Parties agree that the terms of the United Nations Convention (Vienna
     Convention) on Contracts for the International Sale of Goods (1980) shall
     not apply to this Agreement or the obligations of the Parties hereunder.
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                                      -7-


2.   MOLTEN METAL

2.1  SUPPLY AND SALE BY THE SUPPLIER

     (a)  Subject to the terms and conditions of this Agreement, beginning on
          the Effective Date and continuing throughout the Term of this
          Agreement, the Supplier shall supply and sell to the Purchaser "CPT
          the Delivery Site" the quantities of Molten Metal determined in
          accordance with this Agreement.

     (b)  The Supplier shall supply Molten Metal produced by the Supplier from a
          Saguenay Smelter of the Supplier's choosing or from such other sources
          and locations as may be agreed.

2.2  PURCHASE BY THE PURCHASER

     Subject to the terms and conditions of this Agreement, beginning on the
     Effective Date and continuing throughout the Term of this Agreement, the
     Purchaser shall purchase and take delivery from the Supplier "CPT the
     Delivery Site" the quantities of Molten Metal determined in accordance with
     this Agreement.

2.3  QUANTITIES OF MOLTEN METAL REQUIRED BY THE PURCHASER

     (a)  The Purchaser agrees to purchase and the Supplier agrees to supply, in
          each Contract Year, Contract Tonnage of no more than the Base Contract
          Tonnage applicable for such Contract Year and no less than eighty
          percent (80%) of the Base Contract Tonnage applicable for such
          Contract Year as specified by the Purchaser pursuant to Section 2.3(c)
          below. The purchase and supply, as applicable, by the Parties, of any
          greater quantity shall be subject to further agreement of the Parties,
          at each Party's discretion.

     (b)  The Parties shall use Commercially Reasonable Efforts to arrange for
          shipping and delivery schedules to be approximately evenly spread on a
          daily and weekly basis throughout each Contract Year.

     (c)  On or before October 31 in each Contract Year, the Purchaser shall
          submit to the Supplier a notice setting forth the annual quantity of
          Molten Metal required for the next succeeding Contract Year (the
          "CONTRACT TONNAGE" for such Contract Year), which shall be no less
          than 80% of the Base Contract Tonnage applicable to the next
          succeeding Contract Year, and no more than the Base Contract Tonnage
          for such Contract Year, and an estimated shipping schedule and
          quantities of Molten Metal to be purchased in each week of such
          Contract Year; in establishing such shipping schedule, the Purchaser
          shall endeavour to divide the Contract Tonnage as evenly as possible
          for delivery throughout each day and each week in the Contract Year.
          The Contract Tonnage for Contract Year 1, and the estimated shipping
          schedule and quantities of Molten Metal to be delivered in each week
          during Contract Year 1, are set out in SCHEDULE 1 hereto.
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                                      -8-


2.4  OTHER TERMS AFFECTING QUANTITY

     (a)  Throughout the Term of this Agreement, the Purchaser shall be entitled
          to request reductions in the amount of Molten Metal to be delivered in
          any week by the Supplier hereunder by notice to the Supplier, and the
          Supplier shall adjust its shipments so as to provide such reduced
          amount in such week, provided such reduction is made in connection
          with either (i) a planned maintenance shutdown of the Purchaser's
          facilities at Saguenay Works or (ii) a statutory holiday falling in
          such week, and the Parties have agreed on the timing for any such
          maintenance shut down or variation in quantity. The Parties shall use
          their Commercially Reasonable Efforts to reach agreement under this
          Section 2.4(a) with a view to avoiding production disruptions or
          inventory buildup. Any reduction of weekly supply pursuant to this
          Section 2.4(a) shall not affect the obligations of the Purchaser and
          the Supplier under Section 2.3(a).

     (b)  The quantity of Molten Metal which the Purchaser agrees to purchase
          and the Supplier agrees to supply hereunder shall be subject to
          reduction in the event the Supplier provides notice to the Purchaser
          that one or more of the Saguenay Smelters owned by the Supplier has
          been temporarily or permanently shut down by the Supplier, provided
          such shut down has occurred as a result of a good faith decision by
          the Supplier that the continued operation of such Saguenay Smelter
          would be uneconomic or otherwise unviable for the Supplier or non
          value-maximizing for the Supplier. The reduction shall be for such
          quantity as may be agreed by the Parties and, failing agreement, shall
          be for such quantity as is equal to the Contract Tonnage multiplied by
          the annual reduction capacity of the Saguenay Smelters (or Smelter)
          that has (or have) been shut down, and divided by the total annual
          production capacity of all Saguenay Smelters before giving effect to
          the shut down. Supplier shall provide not less than 18 months prior
          notice to Purchaser before invoking this provision.

     (c)  Subject to the Parties' obligations to purchase and supply, as
          applicable, the Contract Tonnage in each Contract Year on the terms of
          this Section 2, the Parties shall consult at least once a week in
          order to agree on the quantities of Molten Metal to be supplied on a
          daily basis. The Supplier will use Commercially Reasonable Efforts to
          allocate Molten Metal produced by the Supplier on a fair basis between
          the Purchaser and facilities of the Supplier or its Affiliates that
          require Molten Metal.

2.5  SUPPLIER'S SHIPPING OBLIGATIONS

     (a)  The Supplier shall supply to the Purchaser, in accordance with the
          terms hereof, in each week, such quantity of Molten Metal as is
          identified by the Purchaser in respect of such week in a notice
          pursuant to Section 2.3(c) hereof, subject to any reduction in
          accordance with Section 2.4.
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                                      -9-


     (b)  Notwithstanding the provisions of Incoterms 2000 and Section 2.10, the
          Supplier acknowledges its responsibility to make all necessary
          arrangements for the transportation of Molten Metal to the Delivery
          Site on behalf of the Purchaser. The Supplier shall act as the
          disclosed agent of the Purchaser in entering into contracts for hiring
          carriers for the shipment of Molten Metal under this Agreement. In
          doing this, the Supplier shall use Commercially Reasonable Efforts to
          obtain the most competitive freight rates and shall obtain approval
          from the Purchaser before entering into any long term contracts for
          hiring carriers on behalf of the Purchaser. The Supplier shall use
          Commercially Reasonable Efforts to ensure that such transportation is
          suitable for delivering Molten Metal to the Delivery Site.

2.6  PRICE

     (a)  The price payable by the Purchaser to the Supplier for each Tonne of
          Molten Metal sold and purchased pursuant to Sections 2.1 and 2.2 shall
          be the Contract Price. The date used for calculating the Contract
          Price for any shipment of Molten Metal shall be the Bill of Lading
          Date.

     (b)  In the event that (i) the LME ceases or suspends trading in aluminum;
          (ii) Metal Week ceases to be published or ceases to publish the
          relevant reference price for determining the Midwest Price; or (iii)
          Metal Bulletin ceases to be published or ceases publication of the
          relevant reference price for determining the Aluminum Price, the
          Parties shall meet with a view to agreeing on an alternative
          publication or, as applicable, an alternative reference price. If the
          Parties fail to reach an agreement within sixty (60) days of any Party
          having notified the other to enter into discussions to agree to an
          alternative publication or reference price, then the Chairman of the
          LME in London, England or his nominee shall be requested to select a
          suitable reference in lieu thereof and an appropriate amendment to the
          terms of this Section 2.6. The decision of the Chairman or his nominee
          shall be final and binding on the Parties.

2.7  QUALITY

     (a)  Molten Metal supplied under this Agreement shall comply with the
          definition of "Molten Metal" set forth in Section 1.1. The Supplier
          shall use Commercially Reasonable Efforts to notify the Purchaser
          prior to shipment of any Molten Metal that does not meet this
          description. The Purchaser shall not be required to accept delivery of
          any Molten Metal that does not meet this description. If the Purchaser
          does not accept delivery of Molten Metal not meeting this description,
          the Supplier's obligation shall be limited to the assumption of all
          costs for return of such Molten Metal to the Supplier, and for the
          delivery of replacement Molten Metal to the Purchaser. All other
          express or implied warranties, conditions and other terms relating to
          Molten Metal hereunder, including warranties relating to
          merchantability or fitness for a
<PAGE>
                                      -10-


          particular purpose, are hereby excluded to the fullest extent
          permitted by Applicable Law.

     (b)  The Purchaser may from time to time propose that Molten Metal to be
          supplied hereunder comply with additional specifications. The Supplier
          shall use Commercially Reasonable Efforts to agree to such proposed
          modifications or additions.

     (c)  The Parties shall cooperate in good faith to develop a plan for
          addressing sodium content issues in Molten Metal supplied from the
          Supplier's Alma smelter by June 30, 2005.

2.8  PAYMENT

     (a)  The Purchaser shall pay the Supplier in full, in accordance with
          Supplier's commercial invoice, for each shipment of Molten Metal
          meeting the Specifications for P1020 aluminum metal or otherwise
          accepted by Purchaser. Payment shall be made every 14 days commencing
          February 14, 2005 (each a "Payment Date"), or if such day is not a
          Business Day, then on the immediately following Business Day. Payment
          shall be made on each Payment Date in respect of all invoices issued
          not later than 31 days prior to such payment date and not previously
          paid, with invoices issued after such date being payable on the next
          following Payment Date.

     (b)  If the Purchaser believes that a shipment of Molten Metal does not
          meet the description of Molten Metal as defined in this Agreement and
          has rejected such shipment in a timely manner in accordance with the
          terms hereof, it need not pay the invoice. However, if the Purchaser
          subsequently accepts that the Molten Metal complies with the
          requirements of this Agreement, the Purchaser shall pay the invoice
          and, if payment is overdue pursuant to Section 2.8(a) above, interest
          in accordance with Section 2.8(c).

     (c)  If any payment required to be made pursuant to Section 2.8(a) above is
          overdue, the full amount shall bear interest at a rate per annum equal
          to the Default Interest Rate calculated on the actual number of days
          elapsed, accrued from and excluding the date on which such payment was
          due, up to and including the actual date of receipt of payment in the
          nominated bank or banking account.

     (d)  All amounts paid to the Supplier or the Purchaser hereunder shall be
          paid in Dollars by wire transfer in immediately available funds or by
          ACH to the account specified by the Supplier or Purchaser, as
          applicable, by notice from time to time by one Party to the other
          hereunder.

     (e)  If any Party fails to purchase or supply, as applicable, any quantity
          of Molten Metal in any month as required under the terms of this
          Agreement, such Party shall be liable to the other Party for all
          direct damages, losses and costs
<PAGE>
                                      -11-


     resulting from such failure, provided that such other Party shall use its
     Commercially Reasonable Efforts to mitigate such damages, losses and costs.

2.9  DELIVERY

     Molten Metal shall be delivered CPT the Delivery Site. The delivery of
     Molten Metal pursuant to this Section 2.9 shall be governed by Incoterms
     2000, as amended from time to time.

2.10 TITLE AND RISK OF LOSS

     Title to and risk of damage to and loss of Molten Metal shall pass to the
     Purchaser as the Molten Metal is delivered by the Supplier to the carrier.

2.11 PURCHASER AS PRINCIPAL

     The Purchaser warrants that all Molten Metal to be purchased hereunder
     shall be purchased for Purchaser's own consumption. The Purchaser agrees
     that it shall not re-sell or otherwise make available to any Person any
     Molten Metal purchased from the Supplier hereunder, other than in respect
     of transactions undertaken in small quantities by the Purchaser to balance
     purchases or Purchaser's metal position.

3.   FORCE MAJEURE

3.1  EFFECT OF FORCE MAJEURE

     No Party shall be liable for any loss or damage that arises directly or
     indirectly through or as a result of any delay in the fulfilment of or
     failure to fulfil its obligations in whole or in part (other than the
     payment of money as may be owed by a Party) under this Agreement where the
     delay or failure is due to Force Majeure. The obligations of the Party
     affected by the event of Force Majeure (the "AFFECTED PARTY") shall be
     suspended, to the extent that those obligations are affected by the event
     of Force Majeure, from the date the Affected Party first gives notice in
     respect of that event of Force Majeure until cessation of that event of
     Force Majeure (or the consequences thereof).

3.2  DEFINITION

     "FORCE MAJEURE" shall mean any act, occurrence or omission (or other
     event), subsequent to the commencement of the Term hereof, which is beyond
     the reasonable control of the Affected Party including, but not limited to:
     fires, explosions, accidents, strikes, lockouts or labour disturbances,
     floods, droughts, earthquakes, epidemics, seizures of cargo, wars (whether
     or not declared), civil commotion, acts of God or the public enemy, action
     of any government, legislature, court or other Governmental Authority,
     action by any authority, representative or organisation exercising or
     claiming to exercise powers of a government or
<PAGE>
                                      -12-


     Governmental Authority, compliance with Applicable Law, blockades, power
     failures or curtailments, inadequacy or shortages or curtailments or
     cessation of supplies of raw materials or other supplies, failure or
     breakdown of equipment of facilities, the invocation of Force Majeure by
     any party to an agreement under which any Party's operations are affected,
     and any declaration of Force Majeure by the facility producing the Molten
     Metal, or any other event beyond the reasonable control of the Parties
     whether or not similar to the events or occurrences enumerated above. In no
     circumstances shall problems with making payments constitute Force Majeure.

3.3  NOTICE

     Upon the occurrence of an event of Force Majeure, the Affected Party shall
     promptly give notice to the other Party hereto setting forth the details of
     the event of Force Majeure and an estimate of the likely duration of the
     Affected Party's inability to fulfil its obligations under this Agreement.
     The Affected Party shall use Commercially Reasonable Efforts to remove the
     said cause or causes and to resume, with the shortest possible delay,
     compliance with its obligations under this Agreement, provided that the
     Affected Party shall not be required to settle any strike, lockout or
     labour dispute on terms not acceptable to it. When the said cause or causes
     have ceased to exist, the Affected Party shall promptly give notice to the
     other Party that such cause or causes have ceased to exist.

3.4  PRO RATA ALLOCATION

     If the Supplier's supply of any Molten Metal to be delivered to the
     Purchaser is stopped or disrupted by an event of Force Majeure, the
     Supplier shall have the right to allocate its available supplies of such
     Molten Metal, if any, among any or all of its existing customers whether or
     not under contract, in a fair and equitable manner. In addition, where the
     Supplier is the Affected Party, it may (but shall not be required to) offer
     to supply, from another source, Molten Metal of similar quality in
     substitution for the Molten Metal subject to the event of Force Majeure to
     satisfy that amount which would have otherwise been sold and purchased
     hereunder at a price which may be more or less than the price hereunder.

3.5  CONSULTATION

     Within thirty (30) days of the cessation of the event of Force Majeure, the
     Parties shall consult with a view to reaching agreement as to the
     Supplier's obligation to provide, and the Purchaser's obligation to take
     delivery of, that quantity of Molten Metal that could not be sold and
     purchased hereunder because of the event of Force Majeure, provided that
     any such shortfall quantity has not been replaced by substitute Molten
     Metal pursuant to the terms above.

     In the absence of any agreement by the Parties, failure to deliver or
     accept delivery of Molten Metal which is excused by or results from the
     operation of the foregoing
<PAGE>
                                      -13-


     provisions of this Section 3 shall not extend the Term of this Agreement
     and the quantities of Molten Metal to be sold and purchased under this
     Agreement shall be reduced by the quantities affected by such failure.

3.6  TERMINATION

     (a)  If an event of Force Majeure where the Affected Party is the Purchaser
          shall continue for more than ***consecutive calendar months, then the
          Supplier shall have the right to terminate this Agreement.

     (b)  If an event of Force Majeure where the Affected Party is the Supplier
          shall continue for more than ***consecutive calendar months, then the
          Purchaser shall have the right to terminate this Agreement.

4.   ASSIGNMENT

4.1  PROHIBITION ON ASSIGNMENTS

     No Party shall assign or transfer this Agreement, in whole or in part, or
     any interest or obligation arising under this Agreement, except as
     permitted by Section 4.2, without the prior written consent of the other
     Party.

4.2  ASSIGNMENT WITHIN ALCAN GROUP OR NOVELIS GROUP

     (a)  With the consent of Novelis, such consent not to be unreasonably
          withheld or delayed, Alcan may elect to have one or more of the
          Persons comprising the Alcan Group assume the rights and obligations
          of the Supplier under this Agreement, provided that

          (i)  Alcan shall remain fully liable for all obligations of the
               Supplier hereunder, and

          (ii) the transferee will remain at all times a member of the Alcan
               Group;

     any such successor to Alcan as a Supplier under this Agreement shall be
     deemed to be the "SUPPLIER" for all purposes of the Agreement.

     (b)  With the consent of Alcan, such consent not to be unreasonably
          withheld or delayed, Novelis may elect to have one or more of the
          Persons comprising the Novelis Group assume the rights and obligations
          of the Purchaser under this Agreement, provided that

----------
***  Certain information on this page has been omitted and filed separately with
     the Securities and Exchange Commission. Confidential treatment has been
     requested with respect to the omitted portions.
<PAGE>
                                      -14-


          (i)  Novelis shall remain fully liable for all obligations of the
               Purchaser hereunder, and

          (ii) the transferee will remain at all times a member of the Novelis
               Group;

     any such successor to Novelis as Purchaser under this Agreement shall be
     deemed to be the "PURCHASER" for all purposes of this Agreement.

5.   TERM AND TERMINATION

5.1  EFFECTIVENESS

     This Agreement shall come into full force and effect upon the Effective
     Date.

5.2  TERM

     The term of this Agreement (the "TERM") shall be from the Effective Date
     until ***, unless terminated earlier or extended pursuant to the provisions
     of this Agreement.

5.3  EXTENSION

     One year prior to the expiration of the Term, the Parties may, upon the
     request of either Party, meet to negotiate in good faith a possible
     extension of the Term for a further period on terms to be mutually agreed
     (including in respect of quantities of Molten Metal to be purchased and
     supplied hereunder and pricing to apply in such further period). If no such
     Agreement is reached between the Parties, the Agreement shall terminate
     upon expiry of the Term.

5.4  TERMINATION

     This Agreement shall terminate:

     (a)  upon expiry of the Term;

     (b)  upon the mutual agreement of the Parties prior to the expiry of the
          Term;

     (c)  pursuant to Section 3.6 as a result of Force Majeure; or

     (d)  upon the occurrence of an Event of Default, in accordance with Section
          6.

----------
***  Certain information on this page has been omitted and filed separately with
     the Securities and Exchange Commission. Confidential treatment has been
     requested with respect to the omitted portions.
<PAGE>
                                      -15-


6.   EVENTS OF DEFAULT

     This Agreement may be terminated in its entirety immediately at the option
     of a Party (the "TERMINATING PARTY"), in the event that an Event of Default
     occurs in relation to the other Party (the "DEFAULTING PARTY"), and such
     termination shall take effect immediately upon the Terminating Party
     providing notice to the Defaulting Party of the termination.

     For the purposes of this Agreement, each of the following shall
     individually and collectively constitute an "EVENT OF DEFAULT" with respect
     to a Party:

     (a)  such Party defaults in payment of any payments which are due and
          payable by it pursuant to this Agreement, and such default is not
          cured within thirty (30) days following receipt by the Defaulting
          Party of notice of such default;

     (b)  such Party breaches any of its material obligations pursuant to this
          Agreement (other than as set out in paragraph (a) above), and fails to
          cure it within sixty (60) days after receipt of notice from the
          non-defaulting Party specifying the default with reasonable detail and
          demanding that it be cured, provided that if such breach is not
          capable of being cured within sixty (60) days after receipt of such
          notice and the Party in default has diligently pursued efforts to cure
          the default within the sixty (60) day period, no Event of Default
          under this paragraph (b) shall occur;

     (c)  such Party breaches any material representation or warranty, or fails
          to perform or comply with any material covenant, provision,
          undertaking or obligation in or of the Separation Agreement;

     (d)  in relation to the Purchaser (1) upon the occurrence of a Non Compete
          Breach (as defined in the Separation Agreement) and the giving of
          notice of the termination of this Agreement by Alcan to Novelis
          pursuant to Section 14.03(b) of the Separation Agreement and pursuant
          to this paragraph of this Agreement, or (2) upon the occurrence of a
          Change of Control Non Compete Breach (as defined in the Separation
          Agreement) and the giving of notice of the termination of this
          Agreement by Alcan to Novelis pursuant to Section 14.04(e) of the
          Separation Agreement, in which event the termination of this Agreement
          shall be effective immediately upon Alcan providing Novelis notice
          pursuant to Section 14.03(b) or Section 14.04(e) of the Separation
          Agreement;

     (e)  such Party (i) is bankrupt or insolvent or takes the benefit of any
          statute in force for bankrupt or insolvent debtors, or (ii) files a
          proposal or takes any action or proceeding before any court of
          competent jurisdiction for dissolution, winding-up or liquidation, or
          for the liquidation of its assets, or a receiver is appointed in
          respect of its assets, which order, filing or appointment is not
          rescinded within sixty (60) days; or
<PAGE>
                                      -16-


     (f)  proceedings are commenced by or against such Party under the laws of
          any jurisdiction relating to reorganization, arrangement or
          compromise.

7.   REPRESENTATIONS AND WARRANTIES

     The Parties hereby reiterate for the purposes of this Agreement those
     representations and warranties set forth in Article VI of the Separation
     Agreement.

8.   CONFIDENTIALITY

     Each of the Parties shall at all times be in full compliance with its
     obligations under Sections 11.07 and 11.08 (Confidentiality) of the
     Separation Agreement.

9.   DISPUTE RESOLUTION

9.1  DISPUTES

     The Master Agreement with respect to Dispute Resolution, effective on the
     Effective Date, among the Parties and other parties thereto shall govern
     all disputes, controversies or claims (whether arising in contract, delict,
     tort or otherwise) ("DISPUTES") between the Parties that may arise out of,
     or relate to, or arise under or in connection with, this Agreement or the
     transactions contemplated hereby (including all actions taken in
     furtherance of the transactions contemplated hereby), or the commercial or
     economic relationship of the Parties relating hereto or thereto.

9.2  CONTINUING OBLIGATIONS

     The existence of a Dispute with respect to this Agreement between the
     Parties shall not relieve either Party from performance of its obligations
     under this Agreement that are not the subject of such Dispute.

10.  MISCELLANEOUS

10.1 CONSTRUCTION

     The terms of Section 16.04 (Construction) of the Separation Agreement shall
     apply to this Agreement, mutatis mutandis, as if all references therein to
     the "Agreement" were deemed to be references to this Agreement.

10.2 NOTICES

     All notices and other communications under this Agreement shall be in
     writing and shall be deemed to be duly given (a) on the date of delivery,
     if delivered personally, (b) on the first Business Day following the date
     of dispatch if delivered by a
<PAGE>
                                      -17-


     nationally recognized next-day courier service, (c) on the date of actual
     receipt if delivered by registered or certified mail, return receipt
     requested, postage prepaid or (d) if sent by facsimile transmission, when
     transmitted and receipt is confirmed by telephone. All notices hereunder
     shall be delivered as follows:

     IF TO THE PURCHASER, TO:

     NOVELIS INC.
     Suite 3800
     Royal Bank Plaza, South Tower
     P.O. Box 84
     200 Bay Street
     Toronto, Ontario
     M5J 2Z4
     Fax: 416-216-3930

     Attention: Chief Executive Officer

     IF TO THE SUPPLIER, TO:

     ALCAN INC.
     1188 Sherbrooke Street West
     Montreal, Quebec
     H3A 3G2
     Fax: 514-848-8115

     Attention: Chief Legal Officer

     Any Party may, by notice to the other Party, change the address or fax
     number to which such notices are to be given.

10.3 GOVERNING LAW

     This Agreement shall be governed by and construed and interpreted in
     accordance with the laws of the Province of Quebec and the laws of Canada
     applicable therein, irrespective of conflict of laws principles under
     Quebec law, as to all matters, including matters of validity, construction,
     effect, enforceability, performance and remedies.

10.4 JUDGMENT CURRENCY

     The obligations of a Party to make payments hereunder shall not be
     discharged by an amount paid in any currency other than Dollars, whether
     pursuant to a court judgment or arbitral award or otherwise, to the extent
     that the amount so paid upon
<PAGE>
                                      -18-


     conversion to Dollars and transferred to an account indicated by the Party
     to receive such funds under normal banking procedures does not yield the
     amount of Dollars due, and each Party hereby, as a separate obligation and
     notwithstanding any such judgment or award, agrees to indemnify the other
     Party against, and to pay to such Party on demand, in Dollars, any
     difference between the sum originally due in Dollars and the amount of
     Dollars received upon any such conversion and transfer.

10.5 ENTIRE AGREEMENT

     This Agreement, the Separation Agreement and schedules, exhibits, annexes
     and appendices hereto and thereto and the specific agreements contemplated
     herein or thereby, contain the entire agreement between the Parties with
     respect to the subject matter hereof and supersede all previous agreements,
     negotiations, discussions, writings, understandings, commitments and
     conversations with respect to such subject matter. No agreements or
     understandings exist between the Parties with respect to the subject matter
     hereof other than those set forth or referred to herein or therein.

10.6 CONFLICTS

     In case of any conflict or inconsistency between this Agreement and the
     Separation Agreement, this Agreement shall prevail.

10.7 SEVERABILITY

     If any provision of this Agreement or the application thereof to any Person
     or circumstance is determined by a court of competent jurisdiction to be
     invalid, void or unenforceable, the remaining provisions hereof, or the
     application of such provision to Persons or circumstances or in
     jurisdictions other than those as to which it has been held invalid or
     unenforceable, shall remain in full force and effect and shall in no way be
     affected, impaired or invalidated thereby, so long as the economic or legal
     substance of the transactions contemplated hereby is not affected in any
     manner adverse to any Party. Upon such determination, the Parties shall
     negotiate in good faith in an effort to agree upon such a suitable and
     equitable provision to effect the original intent of the Parties.

10.8 SURVIVAL

     The obligations of the Parties under Sections 2.6, 2.7, 2.8, 8, 9, 10.3 and
     10.8 and liability for the breach of any obligation contained herein shall
     survive the expiration or earlier termination of this Agreement.

10.9 EXECUTION IN COUNTERPARTS

     This Agreement may be executed in one or more counterparts, all of which
     shall be considered one and the same agreement, and shall become effective
     when one or
<PAGE>
                                      -19-


     more counterparts have been signed by each of the Parties and delivered to
     the other Party.

10.10 AMENDMENTS

     No provisions of this Agreement shall be deemed waived, amended,
     supplemented or modified by any Party, unless such waiver, amendment,
     supplement or modification is in writing and signed by the authorized
     representative of the Party against whom it is sought to enforce such
     waiver, amendment, supplement or modification.

10.11 WAIVERS

     No failure on the part of a Party to exercise and no delay in exercising,
     and no course of dealing with respect to, any right, power or privilege
     under this Agreement shall operate as a waiver thereof, nor shall any
     single or partial exercise of any right, power or privilege under this
     Agreement preclude any other or further exercise thereof or the exercise of
     any other right, power or privilege. The remedies provided herein are
     cumulative and not exclusive of any remedies provided by Applicable Law.

10.12 NO PARTNERSHIP

     Nothing contained herein or in the Agreement shall make a Party a partner
     of any other Party and no Party shall hold out the other as such.

10.13 TAXES, ROYALTIES AND DUTIES

     All royalties, taxes and duties imposed or levied on any Molten Metal
     delivered hereunder (other than any taxes on the income of the Supplier)
     shall be for the account of and paid by the Purchaser.

10.14 LIMITATIONS OF LIABILITY

     (a)  Neither Party shall be liable to the other Party for any indirect,
          collateral, incidental, special, consequential or punitive damages,
          lost profit or failure to realize expected savings or other commercial
          or economic loss of any kind, howsoever caused, and on any theory of
          liability (including negligence) arising in any way out of this
          Agreement; provided, however, that the foregoing limitations shall not
          limit any Parties' indemnification obligations for Liabilities with
          respect to Third Party Claims as set forth Article IX of the
          Separation Agreement (as if such Article IX was set out in full herein
          by reference to the obligations of the Parties hereunder).

     (b)  Sections 9.04, 9.05, 9.06, 9.07 and 9.09 of the Separation Agreement
          shall apply mutatis mutandis with respect to any Liability subject to
          any indemnification or reimbursement pursuant to this Agreement.
<PAGE>
                                      -20-


[THE REMAINDER OF THIS PAGE IS INTENTIONALLY BLANK.]
<PAGE>
IN WITNESS WHEREOF, the Parties hereto have caused this Molten Metal Supply
Agreement to be executed by their duly authorized representatives.

                                        NOVELIS INC.


                                        By: /s/ Brian W. Sturgell
                                            ------------------------------------
                                            Name:
                                                  ------------------------------
                                            Title:
                                                   -----------------------------


                                        ALCAN INC.


                                        By: /s/ David McAusland
                                            ------------------------------------
                                            Name:
                                                  ------------------------------
                                            Title:
                                                   -----------------------------