New smelter threat

Press, 12 November 1977, Page 6

New smelter threat

NZPA-Reuter Tokyo Two Japanese aluminium firms said yesterday they might close the Bluff smelting plant, of which they are part-owners, unless agremenet is reached with the New Zealand Government over a planned power-cost increase of about 600 per cent. The two firms, Showa D e n k o Daisha and Sumitomo Chemical Company, said also that they might take court action in New Zealand claiming breach of contract over power supplies.

The third and senior partner in the smelting enterprise, Comalco of Australia, had already said it was willing to close the plant at Bluff if there was no agreement, they said. The planned increase, from the equivalent of O.4VS cents to between 2.0 and 2.4 cents per kilowatt, would jeopardise commercial operations at the plant, they added. Talks on a possible agreement between the New Zealand Government and the three owners had made little progress since their compromise plan

was rejected last month, I they said. At present the plant is being supplied with lowcost electricity from the Manapouri power station under a 75-year contract between Comalco and the Government. The refiner,' opened in 1971 to produce 150,000 tonnes of refined aluminium a year, half of which was for Japan, Showa Denko said. Half is owned by Comalco, and the remainder is shared equally between the two Japanese firms.