MAJOR PROJECT

Otago Daily Times, Issue 26749, 19 April 1948, Page 4

MAJOR PROJECT

ALUMINIUM INDUSTRY MINISTER HOPEFUL OF PROGRESS Special to the Daily Times WELLINGTON, Apl. 18. Continued hope that the project for the large-scale production of aluminium in the far southern sounds would ’be proceeded with was expressed by the Minister of Finance, Mr Nash, who on a previous visit to Canada, bad been in touch with Aluminium, Ltd., of Canada. He said yesterday in answer to an inquiry that he had recently been in contact with the financial and engineering groups associated with the project. “No major development can be reported at this stage,” said the Minister, “ but there is no question that they would like to go on with the project.” Mr Nash was asked his opinion whether New Zealand was likely to enjoy a considerable benefit from the tendency of big industrial concerns to decentralise their activities as the result of experience in the last war. He considered that this process was inevitable and that New Zealand would get its share according to its natural resources. “ Our hydro electric power resources,” he said, “ are amazing and from the cost point of view are attractive for large scale industrial operations. An important factor is generation of cheap power, and in the production of aluminium the necessity for importing much of the raw material, bauxite, will be no handicap. Aluminium, Ltd., of Canada imports bauxite from British Guiana and then has to transport it between 200 and 300 miles north to Arvida, where power is available for the manufacturing process. New Zealand has some supplies of bauxite, but it is probable that if the industry started here, imports of raw material would be necessary. Another important factor is labour. Overseas interests like our type of labour. It is not cheap, but it is competent. But if we rest and take it easy these big industrial developments will not occur.” One vital part of the original project for establishing an aluminium smelting plant in one of the far southern sounds was the provision for supply to the Australian market. It is now reported, however, that Australian interests will go ahead with their own new smelting industry and this will affect plans for the marketing of Ihe proposed New Zealand product.