Document:

<PAGE>
                                                                   EXHIBIT 10.31

                         MASTER METAL HEDGING AGREEMENT

                                     between

                                   ALCAN INC.

                                       and

                                  NOVELIS INC.

          DATED DECEMBER o, 2004, WITH EFFECT AS OF THE EFFECTIVE DATE

<PAGE>

                                TABLE OF CONTENTS
<TABLE>
<S>                                                                          <C>
1.  DEFINITIONS AND INTERPRETATION...........................................1
2.  CONFIRMATIONS............................................................5
3.  CALCULATION OF SETTLEMENT AMOUNTS........................................6
4.  PAYMENT..................................................................6
5.  NOVELIS OBLIGATIONS......................................................7
6.  ALCAN'S OBLIGATIONS......................................................7
7.  VOLUME LIMITS AND MARKET DISRUPTION......................................8
8.  ASSIGNMENT...............................................................9
9.  TERMINATION..............................................................9
10. DISPUTE RESOLUTION.......................................................9
11. MISCELLANEOUS...........................................................10
</TABLE>

<PAGE>

THIS MASTER METAL HEDGING AGREEMENT entered into in the City of Montreal,
Province of Quebec, is dated December o, 2004, with effect as of the Effective
Date.

BETWEEN:    ALCAN INC., a corporation organized under the Canada Business
            Corporations Act ("ALCAN");

AND:        NOVELIS INC., a corporation incorporated under the Canada Business
            Corporations Act ("NOVELIS").

RECITALS:

WHEREAS Alcan and Novelis have entered into a Separation Agreement pursuant to
which the Parties (as defined hereinafter) 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 Separated Businesses held by Novelis include the manufacture of
rolled aluminum.

WHEREAS Alcan supplies to Novelis and other members of Novelis Group (as defined
hereinafter) aluminum pursuant to certain Metal Supply Agreements constituting
Ancillary Agreements to the Separation Agreement.

WHEREAS certain third-party customers of Novelis may request fixed price
arrangements from time to time for the purchase of aluminum products from
Novelis.

WHEREAS Novelis wishes to hedge these price arrangements with third party
customers from fluctuations in the price of aluminum through fixed forward
pricing arrangements.

AND WHEREAS, Alcan is prepared to provide hedging services to Novelis in
accordance with the terms and conditions of this Agreement in respect of
Transactions (as defined herein), with Alcan and Novelis acting both as
principals under such Transactions.

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:

         "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
         policies of such Person,

<PAGE>

         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 Master Metal Hedging Agreement, including all of
         the Schedules and Exhibits hereto.

         "AGREEMENT EFFECTIVE DATE" means the effective date of the Separation
         Agreement as defined therein.

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

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

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

         "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 required or authorized by Applicable Law to close in the City of
         Montreal (Canada) or in the City of New York (United States).

         "BUYER" means Novelis Inc. or such other member of Novelis Group as may
         be authorized from time to time to enter into Transactions as Buyer.

         "CET" means Central European Time.

         "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 envisaged by 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.

         "COMMODITY" shall mean aluminum metal.

         "CONFIRMATION" means a written notice provided by Alcan to Novelis,
         specifying the information indicated in Section 2, as applicable.

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

         "DEFAULTING PARTY" has the meaning set forth in Section 9.1.

                                      -2-
<PAGE>

         "DETERMINATION DATE" shall mean the last date of the relevant
         Determination Period, being the date on which the Settlement Amount for
         such Determination Period is calculated.

         "DETERMINATION PERIOD" shall mean, in respect of any Transaction (i)
         for the first Determination Period, the period from and including the
         Effective Date to and including the first Determination Date, and (II)
         for each subsequent Determination Period, the period from but excluding
         the Determination Date of the immediately prior Determination Period,
         to and including the next subsequent Determination Date, and the last
         day of the final Determination Period shall be the Termination Date,
         such Determination Period or Periods being defined in the Confirmation.

         "DOLLARS" or "$" means, except where otherwise expressly indicated, the
         lawful currency of the United States of America.

         "EFFECTIVE DATE" shall mean the date specified as such in the
         Confirmation by the Parties, which date is the first date of the first
         Determination Period.

         "EFFECTIVE TIME" means 12:01 a.m. Montreal time on the Effective Date.

         "EST" means Eastern Standard Time or, as applicable, Eastern Daylight
         Savings Time.

         "EVENT OF DEFAULT" has the meaning set forth in Section 9.1.

         "FIXED PRICE", in respect of any Transaction, has the meaning specified
         in the relevant Confirmation.

         "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.

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

         "LME" means the London Metal Exchange.

         "MARKET DISRUPTION EVENT" has the meaning specified in Section 7.4 (c)
         of the 2000 Supplement to the 1993 Commodity Derivatives Definitions
         published in 2000 by the International Swaps and Derivatives
         Association, Inc..

         "NOVELIS GROUP" means Novelis and its Subsidiaries from time to time
         after the Effective Time.

         "OHS SYSTEM" means the on-line hedging system used by Novelis.

         "PARTY" means each of Alcan and Novelis, as a party to this Agreement
         and "PARTIES" means both of them.

                                      -3-
<PAGE>

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

         "PRICE", in respect of any Transaction, has the meaning specified in
         the relevant Confirmation.

         "QUANTITY", in respect of any Transaction, has the meaning specified in
         the relevant Confirmation.

         "REFERENCE MARKET-MAKERS" means three leading dealers in the market of
         the Commodity selected by the Parties in good faith.

         "REFERENCE PRICE", in respect of any Transaction, has the meaning
         specified in the relevant Confirmation.

         "REPLACEMENT TRANSACTION" has the meaning set forth in Section 7.3.

         "SELLER" means Alcan Inc.

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

         "SETTLEMENT AMOUNT" of any Swap shall have the meaning attributed to it
         in Section 3.2.

         "SETTLEMENT DATE" with respect to Swaps, shall mean the second Business
         Day next succeeding the last Trading Day of a Determination Period.

         "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" means Alcan Inc.

         "SWAP" means a Commodity swap based on fixed and floating prices using
         a Reference Price or index for an agreed Quantity of a Commodity.

         "TERM" has the meaning set forth in Section 1.4.

         "TERMINATING PARTY" has the meaning set forth in Section 9.1.

         "TERMINATION DATE", in respect of any Transaction, has the meaning
         specified in the relevant Confirmation.

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

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

         "TRADING DAY" means each day during a Determination Period for which a
         Reference Price would, under normal circumstances, be determinable.

                                      -4-
<PAGE>

         "TRANSACTION" means any Swap between Buyer and Seller entered into
         pursuant to this Agreement.

         "TRANSACTION DATE" means the date specified as such in the Confirmation
         by the Parties, which date is the date on which the Parties enter into
         a Transaction.

1.2      Currency. Unless specified otherwise, all references to currency herein
         and in any Confirmations are to US Dollars.

1.3      Effectiveness. This Agreement shall come into full force and effect on
         the Agreement Effective Date.

1.4      Term. The term of this Agreement (the "TERM") shall commence on the
         Agreement Effective Date and shall expire on ***. This Agreement shall
         remain in effect in respect of Transactions entered into on or prior to
         ***, provided that no Transaction hereunder shall have a Determination
         Date later than ***.

1.5      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 7.2 as a result of a Market Disruption
                  Event; or

         (d)      upon the occurrence of an Event of Default, in accordance with
                  Section 9.

2.       CONFIRMATIONS

2.1      Pursuant to a request from Novelis or another authorized member of
         Novelis Group to Alcan through the OHS System, by telephone, fax or
         e-mail, the Parties may enter into Transactions from time to time in
         accordance with the provisions of this Agreement.

2.2      The specific terms and conditions of each Transaction shall be set
         forth in a Confirmation. Each Confirmation shall be delivered by Alcan
         to the relevant member of Novelis Group no later than the end of the
         first Business Day following the Transaction Date in respect of each
         Transaction, and shall be deemed conclusive unless objected to in
         writing by the relevant member of Novelis Group within two Business
         Days of the date of such Confirmation. The Confirmation, together with
         the terms and conditions of this Agreement, shall constitute the terms
         and conditions of such Transaction. In the event of a conflict between
         a Confirmation and this Agreement, the terms of the Confirmation shall
         govern the Transaction.

2.3      For each Swap, the relevant Confirmation shall specify:

         (a)      the Buyer and the Seller;

         (b)      the Commodity;

*** 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.

                                       -5-
<PAGE>

         (c)      the Quantity;

         (d)      the Fixed Price;

         (e)      the Reference Price;

         (f)      the Transaction Date;

         (g)      the Determination Period or Periods;

         (h)      the Termination Date; and

         (i)      any other specific terms as agreed by the Parties.

2.4      Novelis may, from time to time, by notice to Alcan, propose that one or
         more other members of Novelis Group be authorized by Alcan to enter
         into Transactions as Buyer hereunder. Alcan shall not unreasonably
         withhold its authorization, which authorization shall be deemed given
         if Alcan issues a Confirmation naming such member of Novelis Group as
         Buyer. Novelis hereby unconditionally guarantees to Alcan the full and
         timely performance of all obligations of each other member of Novelis
         Group under all Transactions.

2.5      There shall be no obligation for Alcan to enter into any Transactions
         with Novelis other than Swaps, nor shall there be any obligation for
         Alcan to deal in any Commodity other than aluminum metal.

3.       CALCULATION OF SETTLEMENT AMOUNTS

3.1      If the Fixed Price exceeds the Reference Price in a Determination
         Period, the Buyer shall pay to the Seller the Settlement Amount for
         such Determination Period and if the Reference Price exceeds the Fixed
         Price in a Determination Period, the Seller shall pay to the Buyer the
         Settlement Amount for such Determination Period.

3.2      The Settlement Amount for each Determination Period shall be equal to
         the product of (i) the difference between the Fixed Price and the
         Reference Price on the relevant Determination Date and (ii) the
         Quantity. The Settlement Amount for each Determination Period shall be
         paid to the Seller or the Buyer, as the case may be, on the Settlement
         Date with respect to such Determination Period.

4.       PAYMENT

4.1      Novelis shall pay to Alcan an administrative fee in the amount of US$1
         for each tonne of Commodity referenced in a Confirmation. Such
         administrative fee shall be paid on the second Business Day in each
         calendar month in respect of all Confirmations issued during the
         immediately preceding calendar month.

4.2      All payments under Section 3.2, and all payments to Alcan under Section
         4.1, shall be paid to the recipient by wire transfer to the account
         specified by notice from the recipient to the other Party from time to
         time.

                                      -6-
<PAGE>

4.3      If (i) the Payment Dates for two or more Transactions shall fall on the
         same day and (ii) each Party is required to pay an amount under such
         Transactions, then such amounts with respect to each Party shall be
         aggregated and the Party obligated to pay the larger aggregate amount
         will be obligated to pay on the Payment Date to the other Party the
         excess of the larger aggregate amount over the smaller aggregate
         amount.

5.       NOVELIS OBLIGATIONS

5.1      Novelis hereby undertakes to obtain quotations for services hereunder
         from Alcan prior to entering into forward price agreements with
         third-party customers.

5.2      Novelis hereby undertakes to enter into Transactions hereunder, and to
         cause each relevant member of Novelis Group to enter into Transactions
         hereunder, only as principal and pursuant to back-to-back agreements
         with third-party customers. In no event shall Novelis or any other
         member of Novelis Group enter into Transactions hereunder for
         speculative purposes.

5.3      Novelis undertakes to give Alcan access to the OHS System as and when
         requested by Alcan.

5.4      Novelis hereby undertakes to:

         5.4.1    maintain detailed records of all contracts with third-party
                  customers and to make the details of such contracts available
                  to Alcan upon request;

         5.4.2    maintain detailed records of all Transactions with Alcan;

         5.4.3    sign and return each Confirmation received from Alcan within
                  two Business Days of its issuance; and

         5.4.4    provide a certificate on the first day of each calendar
                  quarter, signed by the Chief Executive Officer and Chief
                  Financial Officer of Novelis, certifying compliance by Novelis
                  and each member of its group with their respective obligations
                  hereunder, including those set forth in this Article 5, and
                  under each of their material agreements for borrowing of
                  money.

5.5      Novelis hereby acknowledges that the service provided herein will only
         be available if market conditions allow it.

6.       ALCAN'S OBLIGATIONS

6.1      Alcan hereby undertakes to provide quotations hereunder to Novelis in a
         timely manner and to that effect have employees available for
         quotations and Transactions between 8:30 a.m. CET and 4:00 p.m. EST on
         days LME is open for business.

6.2      On or about the 15th day of each month, Alcan will send to Novelis by
         e-mail or fax the list of Transactions to be unwound in the current
         month. Such list will include the name of the appropriate Novelis Group
         member, the Quantity hedged, the Reference Price and any other
         information agreed by the Parties.

                                      -7-
<PAGE>

6.3      At the latest on the second Business Day following receipt by Novelis
         of the list mentioned in Section 6.2, Novelis shall confirm that the
         information provided is in line with Novelis' position and, if
         necessary, will identify all discrepancies. If Novelis does not respond
         to the list as contemplated herein, it shall be deemed to have approved
         said list.

6.4      On or about the last Business Day of each month, Alcan will send to the
         Novelis Shared Service Centre, in Goettingen (Germany) an Excel spread
         sheet setting forth the calculation of the positions to be unwound with
         respect to each Novelis Group member. In the absence of manifest
         errors, all calculations made by Alcan shall be final and conclusive
         evidence of the amounts payable by Novelis.

7.       VOLUME LIMITS AND MARKET DISRUPTION

7.1      The Parties hereby agree that notwithstanding any other terms and
         conditions of this Agreement, they shall enter into Transactions
         hereunder in respect of no more than *** metric tonnes of aluminum in
         the aggregate over the Term of the Agreement.

7.2      If Alcan determines in good faith that a Market Disruption Event has
         occurred, Alcan may, by notice to Novelis, cause all outstanding
         Transactions to be terminated immediately and settled on the basis of
         quotations from Reference Market-makers.

7.3      Each quotation referred to in Section 7.2 will be for an amount, if
         any, that would be paid to such party (expressed as a negative number)
         or by such party (expressed as a positive number) in consideration of
         an agreement between such party and the quoting Reference Market-maker
         to enter into a transaction (the "REPLACEMENT TRANSACTION") that would
         have the effect of preserving for such party the economic equivalent of
         any payment or delivery (whether the underlying obligation was absolute
         or contingent and assuming the satisfaction of each applicable
         condition precedent) in respect of such terminated Transactions. For
         this purpose, unpaid amounts in respect of the terminated Transactions
         are to be excluded but, without limitation, any payment or delivery
         that would have been required (assuming satisfaction of each applicable
         condition precedent) after that early termination date is to be
         included. The Replacement Transaction shall be subject to such
         documentation as such party and the Reference Market-maker may, in good
         faith, agree upon. Alcan will request each Reference Market-maker to
         provide its quotation to the extent reasonably practicable as of the
         same day and time (without regard to different time zones) on or as
         soon as reasonably practicable after the relevant early termination
         date. The day and time as of which those quotations are to be obtained
         will be selected in good faith by Alcan. The market quotation will be
         the quotation remaining after disregarding the highest and lowest
         quotations. For this purpose, if more than one quotation has the same
         highest value or lowest value, then one of such quotations shall be
         disregarded.

7.4      Any amount payable by one party to the other following the quotations
         process contemplated by Section 7.3 above shall be paid no later than
         the second Business Day following the completion of said quotations
         process.

*** 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.

                                      -8-
<PAGE>

8.       ASSIGNMENT

         No Party shall assign or transfer this Agreement, in whole or in part,
         or any interest or obligation arising under this Agreement, without the
         prior written consent of the other Party, which consent may be granted
         or withheld in such Party's sole discretion.

9.       TERMINATION

9.1      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 another 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:

         9.1.1    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;

         9.1.2    such Party breaches any of its material obligations pursuant
                  to this Agreement (other than as set out in paragraph 9.1.1
                  above), and fails to cure it within thirty (30) days after
                  receipt of notice from the Terminating Party specifying the
                  default in reasonable detail and demanding that it be
                  rectified, provided that if such breach is not capable of
                  being cured within thirty (30) days after receipt of such
                  notice and the Defaulting Party has diligently pursued efforts
                  to cure the default within the thirty (30) day period, no
                  Event of Default under this paragraph 9.1.2 shall occur;

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

         9.1.4    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 its 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.

9.2      As at the date specified in the notice given by the Terminating Party,
         all outstanding Transactions shall be terminated and the amounts
         payable by Novelis shall be determined and paid in accordance with
         Sections 7.2 and 7.3 mutatis mutandis.

10.      DISPUTE RESOLUTION

         The Master Agreement with Respect to Dispute Resolution, effective on
         the Agreement Effective Date, among the Parties and other parties
         thereto shall govern all disputes,

                                      -9-
<PAGE>

         controversies or claims (whether arising in contract, delict, tort or
         otherwise) 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.

11.      MISCELLANEOUS

11.1     Construction. The rules of construction and interpretation set forth in
         Section 16.04 of the Separation Agreement shall apply to this
         Agreement.

11.2     Confidentiality: The exchange of information and confidentiality
         provisions set forth in Article XI of the Separation Agreement shall
         apply to this Agreement (as if such Article was set out in full
         herein).

11.3     Payment Terms. Save as expressly provided in Sections 2, 3, 4 and 6 and
         unless otherwise indicated, any amount to be paid or reimbursed by one
         Party to the other under this Agreement shall be paid or reimbursed
         hereunder within thirty (30) days after presentation of an invoice or a
         written demand therefor and setting forth, or accompanied by,
         reasonable documentation or reasonable explanation supporting such
         amount.

11.4     Notices. Except as provided for in Section 2.1, all notices or 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 nationally recognized next-day courier
         service, (c) on the fifth Business Day following the date of mailing 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 ALCAN, TO:
                  Alcan Inc.
                  1188 Sherbrooke Street West
                  Montreal, Quebec
                  H3A 3G2
                  Fax: (514) 848-8115
                  Attention: Chief Legal Officer

                                      -10-
<PAGE>

                  IF TO NOVELIS, 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

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

11.5     Governing Law. This Agreement shall be governed by and construed 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.

11.6     Entire Agreement. This Agreement and the exhibits, schedules, annexes
         and appendices hereto and the specific agreements contemplated herein,
         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.

11.7     Conflicts. In case of any conflict or inconsistency between this
         Agreement and the Separation Agreement, this Agreement shall prevail.
         In case of any conflict or inconsistency between the terms and
         conditions of this Agreement and the terms of any Confirmation, the
         provisions of the Confirmation shall prevail.

11.8     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.

11.9     Survival. The obligations of the Parties under Sections 7, 10 and 11
         and liability for the breach of any obligation contained herein shall
         survive the expiration or earlier termination of this Agreement.

                                      -11-
<PAGE>

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

11.11    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.

11.12    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.

11.13    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.

11.14    Limitations of Liability. Except as otherwise provided herein, neither
         Party shall be liable to the other Party for any indirect, collateral,
         incidental, special, consequential or punitive damages arising in any
         way out of this Agreement; provided, however, that the foregoing
         limitations shall not limit any Party's indemnification obligations for
         Liabilities with respect to Third Party Claims as set forth in Article
         IX of the Separation Agreement, (as if such Article was set out in full
         herein by reference to the obligations of the Parties hereunder).

11.15    Language. The Parties hereto have required that this Agreement and all
         deeds, documents and notices relating hereto be written in English. Les
         parties aux presentes ont exige que le present contrat et tout autre
         acte, document et avis y afferant soient rediges en anglais.

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY BLANK.]

                                      -12-
<PAGE>

IN WITNESS WHEREOF, the Parties have caused this Master Metal Hedging Agreement
to be executed by their duly authorized representatives.

                                           ALCAN INC.

                                           By:  ________________________________
                                                Name:
                                                Title:

                                           By:  ________________________________
                                                Name:
                                                Title:

                                           NOVELIS INC.

                                           By:  ________________________________
                                                Name:
                                                Title:

                                           By:  ________________________________
                                                Name:
                                                Title:

                                      -13-<PAGE>
                                                                   EXHIBIT 10.32

ALCAN

Alcan Inc.                                                          [ALCAN LOGO]

1188, rue Sherbrooke Quest   Address postal:             Tel. : (514) 848-8000
Montreal (Quebec) H3A 3G2    C.P. 6090                   Telec. : (514) 848-8115
Canada                       Montreal (Quebec) H3C 3A7   www.alcan.com
                             Canada

                       CONFIDENTIAL PERSONAL INFORMATION

December 16, 2004

Mr. Brian Sturgell
1 Summer Island Lane
Kiawah Island, SC 29455
U.S.A.

Dear Brian,

I am very pleased to confirm your appointment as President and Chief Executive
Officer of Novelis. This is a truly exciting opportunity, possibly a once in
a lifetime opportunity, to lead and create a brand new company. We all wish you
and your team the greatest of success in this endeavor and are looking forward
to seeing you achieve that.

This letter addresses the specific terms and conditions of your offer
recognizing that in conjunction with the Novelis Board, some of these may be
modified as you begin to better align terms and conditions with the needs of
Novelis.

POSITION TITLE
I am pleased to confirm the title of President and Chief Executive Officer,
Novelis Inc.

EMPLOYMENT DATE
Your appointment in this role will commence immediately following the spin off
of Novelis. We continue to believe that this will occur on schedule around
year-end.

RECOGNITION OF ALCAN SERVICE
Novelis will recognize Alcan and predecessor company service for the purposes
of eligibility and accrual of Novelis benefits.

BASE SALARY
Your base salary will be US$985,000.00 This salary recommendation was arrived
at following a review by Towers Perrin of similar positions in similar sized
organizations and has been approved by the Human Resources Committee of the
Board of Directors.

EXECUTIVE PERFORMANCE AWARD 2004
Your participation in the 2004 Alcan Executive Performance Award plan will
continue uninterrupted to year-end at your existing Alcan job grade and will be
paid in the same timeframe and manner as you have experienced in the past.

EXECUTIVE PERFORMANCE AWARD 2005
Novelis will institute a short-term incentive program for the 2005 plan year
conceptually similar to the existing Alcan plan. It is possible that the
financial metrics will be adjusted to better fit the new business. The target
guideline for your job grade 59 is 100%.
<PAGE>
_______________________________________________________________________________

Page 2 of 3

TOTAL SHAREHOLDER RETURN (TSR) PERFORMANCE PLAN
Your participation in the Alcan TSR program will be terminated at the date of
spin-off. Your accrued entitlement in this plan (Cycle 1 & Cycle 2) will be
converted into Novelis Restricted Stock Units the day after the spin-off. These
will become fully vested on 1 October 2005 for cycle 1 and 1 October 2006 for
cycle 2.

STOCK OPTIONS
Your current Alcan share options will be converted to Novelis share options at
the time of spin-off so that the intrinsic value of your current Alcan stock
options as at the spin-off date is preserved. All outstanding options will be
converted and those that are vested will continue to be vested. Any that are
unvested will vest in 4 equal installments on the anniversary of the spin date
on each of the next four years.

As you are aware, Novelis will introduce a Long Term Incentive Program, the
details of which will require the approval of its Board of Directors, in which
you will be entitled to participate to a level determined by the Novelis Board.

Alcan options vest based upon performance of Alcan stock with the performance
goals established to reflect Alcan's stock past performance. Novelis being a
new company has no past performance and therefore performance vesting is not
possible.

U.S. DEFERRED COMPENSATION PLAN
Alcan will maintain your deferred compensation account (if any) which will
continue to be subject to the elections that you have made previously. There
are no plans to create a deferred compensation plan within Novelis at the point
of the spin-off.

CHANGE IN CONTROL AGREEMENT
Your Change in Control agreement with Alcan will be cancelled at the date of
spin-off and be replaced by a Novelis agreement with similar terms and
provisions.

BENEFIT PLANS
Your participation in the Alcan retirement and health and welfare benefit plans
will continue up to the point of the spin-off. Novelis will adopt plans with
provisions for the most part similar to those currently in effect within Alcan.

MISCELLANEOUS PLANS
Participation in other plans (e.g. Flexperks, Auto, and Executive Physical
Exams) will continue as they exist today.

PENSION
Your participation in the Alcan Pension Plan for Officers (APPO) will terminate
at the date of spin-off. Novelis will adopt a plan, the Novelis Pension Plan
for Officers (NPPO), with provisions for the most part, identical to those of
the APPO. Your benefits accrued under the APPO will be transferred to the NPPO
which shall recognize your service and earnings as officer with Alcan.

Your membership in the Alcancorp Pension Plan (ACPP) will be maintained and the
plan will be amended in 2005 to recognize service with Novelis for the
transferred employees. Following this period it is anticipated that Novelis
will provide a replacement plan that provides in the aggregate broadly
equivalent benefits.

<PAGE>
Page 3 of 3

Please sign this offer and return it to me at your earliest convenience.

I wish the very best of success in your challenging and exciting new role.

Yours truly,

/s/ Travis
-----------------------------------
Travis

Accepted by /s/ Brian Sturgell                    date
            -----------------------                    -------------------------

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}]]