Bluff Smelter Now ‘Certain’

Press, Volume CVIII, Issue 31672, 7 May 1968, Page 32

Bluff Smelter Now ‘Certain’

(New Zealand Press Association) INVERCARGILL, May 6. The aluminium smelter proposed for Bluff could eventually be nearly three times as big as that originally contemplated by Comalco.

This would be the effect of Japanese participation on the project, a decision which could be announced before the end of this month.

Advice of that was given today by the Minister of Justice (Mr Hanan), member of Parliament for Invercargill, one of the prime movers of both smelter and the Manapouri power scheme that would serve it. He said that, irrespective nf the Japanese decision, he was convinced that there would be a smelter at Bluff. Speaking to the annual conference of Federated Fanners (Southland) he said the question was no longer “whether there is to be an aluminium smelter at Bluff,” but ‘‘how big it will be.” These were among points made by Mr Hanan at the meeting and afterwards: Without file Japanese a smaller smelter, designed to meet New Zealand's aluminium requirements, would still be built With the Japanese the smel-

ter would logically expand nearly to the full capacity of the Manapouri - Te Anau power resource. Full development with Japanese participation would mean an output approaching 300,000 tons of metal yearly, in contrast to the 100.000-ton smelter in mind when investigations began nearly a decade ago. Japanese Part

Mr Hanan emphasised that a Japanese part in the project would result in a large amount of overseas exchange going through the New Zealand banking system. It was not suggested, he said, that New Zealand had to find any overseas exchange for the project Mr Hanan said it was not known how long the current Comalco - Japanese - Government talks would continue in Wellington. It was possible they would go on for a further fortnight Any agreements would then have to go before the respective company boards and Governments.

However, he said, he would expect a decision before the end of the month on whether Japan was going to take a part in the smelter. All going well, the Japanese would not only be putting up overseas exchange, but in proportion to their capital expenditure. would be contracting to take a significant amount of the smelter output for a period of perhaps 15 to 20 years, said Mr Hanan. Other Effects “I am optimistic that the Japanese want to come in and obtain the benefits of our electricity. And New Zealand wants them in.”

Among the effects if smelter construction went ahead would be: A need for up to 300 houses in Invercargill An immediate start of upgrading the road to Awarua Bay and the building of causeway-bridge-cause-way access across the bay to the smelter site on Tiwai Point (Bluff Harbour). Erection of wharf facilities off Tiwai. Employment for 1000 to 1500 construction workers. Mr Hanan also cited several secondary effects. Engineering industries, especially in Invercargill and Dunedin, and possibly also in Christchurch, would be worked to capacity to produce certain smelter components and other gear. Power development on the Waitaki River would be hastened if the “grand scale” smelter was built The Waitaki work force could then double, and thus help relieve the unemployment situation throughout New Zealand.

The statement by Mr Hanan that a smaller aluminium plant would be built at Bluff “no matter what the outcome of the present discussions with Comalco was,” was quite justified, according to the Prime Minister (Mr Holyoake) tonight, says the Wellington reporter of “The Press,”

Mr Holyoake declined to elaborate on this. “It would be quite unhelpful for me to say any more at this stage of negotiations,” he said.

The meeting between Comalco representatives and officers of Government departments went on today. No report was made to the Cabinet about progress. It has been suggested that the setting up of a smaller plant at Bluff is'being considered as part of the present negotiations. The object of this would be to keep the offer open to enable some aluminium to be produced, and to retain an option on the full use of 460 megawatts of Manapouri power in 10 years time. The main reason for hesitancy on the part of Comalco, and its Japanese backers, is, it is believed, reluctance to commit the combination to the full project in Hie present uncertain world economic conditions.

This has been balanced by the suggestion from the New Zealand side that “others” are interested in the use of Manapouri power.