New aluminium contract

Press, 16 April 1982, Page 6

New aluminium contract

NZPA staff correspondent . Sydney Comalco, manager' and partner in the Tiwai Point aluminium smelter, has reached agreement for the long-term supply of substantial quantities of primary aluminium' to the large Japanese concern. Showa Denko. A Comalco spokesman said last evening from Melbourne that the tonnage would gradually grow and by 1990 should be' about 100,000 tonnes a year. The metal would come from the Tiwai Point smeller

and the new’ Comalco aluminium smelter at Boyne Island, near Gladstone, in Queensland, he said. But the spokesman said that the company did not envisage' expanding the Tiwai Point smelter beyond the third potline which is expected to start producing metal in August. A Comalco statement said the agreement in principle for the long-term supply qf primary aluminium to Showa Aluminium Industries, the central company of Showa Denko group’s integrated aluminium interests, repre-

sented a further strengthening of : the already close relationship between the.two conipanies. Showa Denko jhas a 25 per cent stake in the Bluff smelter. ■ The new metal supply contract results from a new deal announced yesterday between Showa’Denko. and the Australian company, C.R.A., Ltd, which holds a 45 per cent share of Comalco. C.R.A. said, that it would acquire a 50 per cent interest in the aluminium business of the Showa Denko group.

Showa Aluminium, for about sAustlooM. The Comalco spokesman said the new arrangements meant that C.R.A. had therefore lifted its indirect interest in the Tiwai Point smelter from 22.5 per cent to 35 per cent. Comalco said the metal supply contract would significantly extend Comalco’s established position as a major long-term supplier of primary metal to consumers in Japan and would underpin the continuing expansion of Comalco’s aluminium smelting capacity.