$1 billion expansion planned by Comalco

Press, 2 April 1980, Page 1

$1 billion expansion planned by Comalco

PA

Wellington

Comalco executives have unwrapped an estimated SI billion worth of aluminium smelting and associated industry plans for Government appraisal.

The executives met the Minister of Trade and Industry (Mr Adams-Schnei-der) and the Minister of Energy (Mr Birch) to outline proposals for the use of the surplus hydropower that is now open to offers from industry. Comalco has already announced its proposals to build a third potline at the existing Tiwai Point aluminium smelter. ■. But on Monday they produced their firmed-up plans for both a fourth • and fifth potline to be included in a separatesmelter but on the same Tiwai Point site and* three downstream industries. providing employment fpY up to ■ 6000 people. . According to the chief ’ executive (Mr M. Rayner),/ one of the new industries involves a major • castihg. ; facility based at Bluff.-It would produce components for export arid-" would employ 400. ■.

He would. not release details of the other two proposals, one of which will be located in the North Island. Mr Rayner said the Government has still to set a price for the surplus power it is selling. But for the third pot fi ne — and Government sources say Comalco is almost assured of getting approval for it — the company says work would begin immediately and the line would be ready to begin production by the end of 1981. It would boost the second ■ smelter’s production capacity to 228,000 tonnes /annually. But if the sec-'■'orid-smelter goes ahead as -well,' .total annual production ..would be almost 435,000 tonnes. : /‘SP’ublic shareholding ...would be invited for the downstream industries, Mr Rayner said. Comalco is. the third

international company to submit plans for the use . of the surplus power block. The American aluminium giant, Reynolds International, had executives in New Zealand last month lobbying Government officials with smelter plans. Swiss Aluminium, working with New Zealand’s C.S.R. and Fletcher’s, has presented proposals for a smelter based at Aramoana, Otago Peninsula. Aramoana is the site of gull colonies, and is likely to become the scene of an environmental battle if. it is used as a smelter site. A second smelter at Tiwai Point would at least be free of major environmental arguments. All plans -are being studied by a Government inter-departmental committee which is expected to make recommendations to fhe Cabinet for approval.