Power limits smelter plans

Press, 30 September 1983, Page 4

Power limits smelter plans

PA Wellington The Government would not be able to supply enough electricity for both an Aramoana aluminium smelter and a fourth potline at Tiwai Point until the late 19905, said the Minister of Energy, Mr Birch, yesterday. Mr Birch said that under the present development schedule the Government would not be able to provide the 2000 GWh a year needed for both projects. However, it would be possible to provide 1000 (Wh,

which would be enough for one potline at either Tiwai Point or Aramoana.

Earlier yesterday, the managing director of Comalco, Mr Mark Rayner, said after a meeting with Mr Birch, that an aluminium smelter at Aramoana would rule out a fourth potline at Tiwai Point. Mr Rayner said he certainly did not think there would be room for both projects. “In the light of the 1983 Energy Plan I think some

people would question whether there was adequate power for two potlines,” said Mr Rayner. Mr Birch said the Government did not intend to start negotiations with Comalco now.

“I have an undertaking with Pechiney and FletcherChallenge to review the status of their proposal during October and November,” he said. “Then we may enter into negotiations with Pechiney and Comalco and anyone "telse who is in-

terested in extending the aluminium industry in New Zealand,” said Mr Birch.

Mr Rayner said that a fourth potline at Tiwai Point was clearly a possibility. Comalco was in the business of making aluminium. This was one of the options.

“There is no reason in the company’s view why a fourth potline would not be viable, but the price for electricity and other costs would have to be investigated first,” he said. >

“It could be that over the next six months we will dust off our fourth potline numbers for Tiwai and see whether it makes sense and the sort of power price that would be necessary to make it viable.

“If, after its review of Aramoana, the Government is interested in another potline at Tiwai, we would come back and give our view on the sort of power price that would make the potline viable,” said Mr Rayner.