New aluminium smelter
Sir, — Consideration of the energy costs of aluminium smelting highlights the importance of the negotiations concerning the second smelter. Each tonne of aluminium would pay New Zealand about $2BB for electricity (at 1.8 cents per unit) plus perhaps a similar amount for labour. Replacing this energy for New Zealand users by thermal generation, using about 4.2 tonnes of imported oil or similarly priced coal or gas, would cost New Zealand about $1260. / Considering that aluminium sells for only $lll3 per tonne (Professor van Moesecke), the value of the deal to New Zealand hinges on aspects such as: who (New Zealand or the overseas company) pays for the new power
lines and plant; protection against a dry season or a world glut of aluminium; allowances for inflation and oil price changes; and the employment created. Before any contracts are signed, the more independent alternative of developing electric transport to. use our electricity and reduce oil imports should also be considered in depth. — Yours, etc., R. HARMAN. August 13, 1980.
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Press, 15 August 1980, Page 12
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171New aluminium smelter Press, 15 August 1980, Page 12
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