FIRST STAGES OF £100m SMELTING INDUSTRY

Press, Volume XCIX, Issue 29107, 20 January 1960, Page 14

FIRST STAGES OF £100m SMELTING INDUSTRY

Company Given Rights To Southern Lakes Power (New Zealand Press Association) WELLINGTON, January 19. An agreement between the Government and Consolidated Zinc Proprietary Ltd., of Australia, on the first stage of an aluminium smelting industry in Southland was signed in Wellington tonight. The Minister of Works (Mr Watt) signed for the Government and Mr M. A. Mawby, vice-chairman of Consolidated Zinc, signed for the company. The 14-page agreement was signed in the office of the Prime Minister (Mr Nash) at 7.30 p.m. in the presence of Cabinet Ministers and departmental heads.

The agreement gives the Australian company the right to develop hydro-electric power from Lakes Manapouri and Te Anau.

The company proposes to establish an aluminium industry in New Zealand which will require an investment of at least £lOO million and which will provide employment for several thousand workers.

Mr Nash said the company, on proceeding to develop the area’s potential, is bound by the agreement to construct, by June 30, 1971, works having a designed installed capacity of at least 100 megawatts of power and is bound to develop the full continuous power potential by June 30, 1991.

This full potential is estimated at something in excess of 600 megawatts.

For this purpose the agreement gives the company, subject to certain safeguards, all necessary rights to develop the power potential of the area and to transmit power to the aluminium production area.

Mr Nash emphasised that the Government has taken care to incorporate in the agreement all necessary safeguards to avoid any excessive flow in the lower regions of the Waiau river and to preserve the rights of all rural and township users of water. In particular, much thought had been given by the Government to the preservation of the scenic and recreational attractions of the area, and a clause ensuring this is included in the agreement. “The term of the agreement is for 99 years,” he said. “On fulfilment of the agreement the undertaking will constitute the great-

est industrial project this country has ever seen. Not only will it provide for the utilisation of our national resources but it will also provide employment for many thousands of New Zealanders in the future.”

Mr Mawby when he arrived in Wellington on Monday said the agreement would give the company the right to continue investigations started last October. He made it clear that the purpose of the agreement was to establish the water rights the company would get if, after its investigations, it decided to go ahead with a smelting plant.