ALUMINIUM PLANT

Press, Volume LXXXIV, Issue 25427, 25 February 1948, Page 6

ALUMINIUM PLANT

Talks Begun With N.Z. Government LAKE MANAPOURI PROJECT (N.Z. Press Association—Copyright) (Rec. 1.30 a.m.) CANBERRA. Feb. 24. Powerful British and Canadian interests have opened negotiations with the New Zealand Government for the establishment of a gigantic aluminium ingot production plant at Lake Manapouri, in the South Island. The aim of the project is to provide a strategically safe centre of production to ensure commercial and defence requirements for all major countries in the South Pacific.

Informed quarters believe that approaches may be made to the Australian Government for the Abandonment of the proposed £3.000.000 Tasmanian aluminium production project in favour of an arrangement under which Australia would be offered guaranteed supplies of ingot aluminium from New Zealand, at a cost comparable to that at which it could be produced in Australia. The sponsors of the New Zealand project are working on a projected output of 60.000 tons of aluminium ingot a year, against the output of 6000 to 10.000 tons contemplated in Tasmania. x

The negotiations, it was emphasised to-night, were in the exploratory stage. No commitment had been entered into, although definite proposals had been placed before the New Zealand Government.

The scheme depends largely upon two factors: (1) an adequate supply of electricity; and (2) the obtaining of assured markets in Australia and other Pacific countries. The power supply defficulty would probably be overcome by the establishment in New Zealand of a plant to produce 300,000 kilowatts.

The proposal is understood fo have been discussed informally when Mr Chifley was in New Zealand recently. The project is expected to cost more than £10.000,000. Adequate shipping facilities, it is claimed, could be provided at George Sound or Doubtful Sound. Some confusion exists about the existence of alleged options held by certain persons over the territory. The existence of such options, if they in fact exist, is reported, however, to be causing no concern to the New Zealand Government, which is stated to be investigating the position.