COMALCO AGREEMENT INITIALLED IN WGTN

Press, Volume CVIII, Issue 31726, 9 July 1968, Page 1

COMALCO AGREEMENT INITIALLED IN WGTN

(New Zealand Press Association) WELLINGTON, July 8. Establishment of a nlulti-million dollar aluminium smelter in New Zealand is to go ahead —but details of an agreement between the Government and the Commonwealth Aluminium Corporation (Comalco) will not be announced until tomorrow.

The Minister of Industries and Commerce (Mr Marshall) told a press conference early this afternoon that he would announce the details in Parliament. The agreement was initiated this morning by its principal negotiators—the Secretary of Industries and Commerce (Mr M. J. Moriarty) for the Government, Mr I. Borrie for Comalco, and by representatives of two Japanese industrial firms which are to join Comalco in the smelter project. The two Japanese firms are

Sumitomo Chemicals, of Osaka, and Showa Denko K.K., of Tokyo. The final signature of the agreement will be made in about three weeks. Comalco is expected to build the aluminium smelter at Bluff; power for the project will come from the Manapouri hydro-electric project. Negotiations for the establishment of the smelter have been going on between Comalco and the Government since 1962—although it had been mooted more than 10 years ago. But in recent months the negotiations took on a sense of urgency as Comalco had only until the end of this year to take up its option on the use of Manapouri power. Comalco signed letters of intent with the two Japanese

companies for a joint aluminium smelter project at Bluff in February this year—although it is believed that Comalco will maintain control of the project According to a report in January from Tokyo, the agreement between Comalco and the two companies called for the establishment of a refinery with a capacity of 110,000 tons a year. The report said the refinery would cost $82.5m.

But a year ago the manag-ing-director of Comalco (Mr D. J. Hibberd) said about sl2om (predevaluation) would be required for the first stage of the smelter project. Alumina processed from bauxite at Comalco’s Gladstone plant in Queensland will be shipped to ,New Zea-

land and smelted into aluminium. Construction of the smelter Is expected to demand a work force reaching about 1800 men.

It could have a considerable relieving effect on unemployment in the south, as about 20 per cent of the force will be labourers. However, it is still expected that skilled workers in some categories will be difficult to obtain in the numbers required. Government and union leaders may be called on soon to give urgent attention to a need for recruiting in Australia.

It is estimated that the construction work force will consist of up to 1500 workers, plus 140 supervisory staff, 70 Comalco representatives and construction engineers and 180 construction camp staff.