Company’s Plans

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

Company’s Plans

(New Zeaiana Press Association)

WELLINGTON, January 19.

The Prime Minister (Mr Nash) tonight described the aluminium agreement as “epoch-making.” Mr M. A. Mawby, vice-chair-man of Consolidated Zinc, said the company hoped to start further investigations on the project by the end of this month. These will be carried out by a working party of up to 20 men, including four geologists and a Melbourne consultant.

Speaking after the agreement was signed, Mr Mawby told Ministers and officials the company was convinced it was fully justified in making the investigation But he added:

“If I say that we are now satisfied about what we have seen to date, I hope you will understand me when I temper this with the reminder that at this stage the Manapouri-Te Anau investigation is one only of three major power possibilities for aluminium production. The others are the black coal resources of the central coastal region of Queensland and the waters of the Purari river in Papua.

Bauxite Discovery “Although the discovery of bauxite in New Zealand was recently reported we have no idea yet whether this find has any commercial significance. In our present state of knowledge the foundation of large-scale aluminium production in Australia and New Zealand must be the enormous bauxite deposits in Queensland and the Northern Territory “The Commonwealth Aluminium Corporation is the instrument by which Consolidated Zinc and British Aluminium have been proving these deposits investigating power possibilities in Queensland and New Guinea, and preparing for the establishment of an integrated aluminaaluminium industry in Australia.

“Consolidated Zinc and British Aluminium are equal partners in this venture and the partnership will extend to our investigations into aluminium smelting in New Zealand.

“Along the west coast of the Cape of York Peninsula, Comalco holds a lease area of more than 2000 square miles which has been proved to contain sufficient bauxite to support aluminium smelting industries both in Australia and New Zealand for very many decades to come.

“We have sufficient confidence in the future of aluminium to believe that it may be possible for us to avoid having to make a choice between Australia and New Zealand for the establishment of aluminium smelting capacity. Aluminium Consumption “In 1950, a United States Government commission inquiring into the future of aluminium predicted that, by 1975, consumption in that country would amout to 4.5 million short tons a year. Today estimates suggest that this figure may be nearer 10 million short tons, and it is to be remembered that consumption outside the United States is rising at an even greater rate.

“These forecasts have only to be fractionally correct to provide opportunities for aluminium smelting both in Australia and New Zealand. But there may, of course, be a question of timing, and the necessity to decide whether the first major international aluminium smelter should be built in one country or the other.

“Should we be unable to avoid this kind of decision, it will be necessary to weigh in the balance many factors. As well as the cost of power, transport costs will have to be assessed—of shipping raw materials, of which alumina

will be the main item, and of disposing of finished products in overseas markets. Lake’s Potential

“The Manapouri-Te Anau lake system would seem to have sufficient power potential to smelt 250,000 long tons of aluminium a year.

“The investment required to develop this potential and to establish the necessary smelting capacity would be between £l4O million and £l5O million. “The annual value of the output would be nearly £5O million which would make a very substantial contribution to New Zealand’s export and national income.

“These results are, however, an ultimate goal—a goal which can only be achieved in several steps and with the help and general support of the New Zealand Government and people. “I must refer briefly to the question of national scenic attractions, which is inevitably bound up with the development of the Manapouri-Te Anau system. “I am assured by my colleagues that anyone looking upon the beauty of Manapouri would need to have a heart of stone to be unmoved. We must dedicate ourselves to the preservation of this scenic asset,” Mr Mawby said. “It is. however, for us as much an economic question as an aesthetic one, and I am sure you will agree that we must know exactly what is expected of us if we decide to proceed with a major power development in this superb area. We believe that there need be no major conflict with what we hone to do in Southland.”