New partners sought for Lochinvar

Press, 2 May 1981, Page 21

New partners sought for Lochinvar

PA Melbourne Although a major partner had pulled out of the Lochinvar aluminium project inNew South Wales’ Hunter Valley the project would still go ahead. New partners for the S6OOM smelter project were already being sought. The American-Japanese company Alumax officially announced its withdrawal as a partner yesterday saying that it considered the project was not economically viable. Alumax had a 45 per cent share in the smelter project. BHP held 35 per cent, and

Alfarl had the remaining 2U per cent.: However, the managing director of BHP’s aluminium division, (Mr R. Carter) said that Alumax’s decision would not alter the nature or tim-' ing of the project. In its statement to the Melbourne Stock Exchange BHP said: “Under the agreed terms. Alumax will leave the project after the legal and governmental implications of the withdrawal are finalised. "It is expected that these formalities will take some weeks. “BHP and Alfarl Pty, Ltd, the other partner in the Lochinvar project, will now seek new participants for the venture. ■ , • The N.S.W/ Premier (Mr Wran) said that the' announcement in no way meant the end of the project. “Although it was disappointing/ he said, "It doesn’t spell the end for the smelter." Mr Wran said the Alumax decision might given an opportunity for greater Australian equity in the project.