B.C. Making Pitch For Smelters Aluminum Producers Study Feasibility Of Three Projects In Province
The world’s largest aluminum producer is studying the idea of building a $1.2 billion aluminum smelter in British Columbia.
The announcement Wednesday makes Alcoa the third metals giant to size up British Columbia for a new or expanded smelter.
Alcoa executive Alan Renken signed an agreement with British Columbia Premier Glen Clark to proceed with the study for a project that would create 2,000 direct and indirect jobs in the province - if built.
Alumax Inc. has already announced a review. Alcan Aluminum Ltd. is considering an expansion of its smelter in Kitimat.
“If we were successful in having three new aluminum smelters in British Columbia, it would be the largest single private-sector investment in industry in British Columbia,” Clark told a news conference.
A beaming Clark said the project would be “larger than the pulp mill expansions of the ‘60s, larger than any other private-sector expansion of any other industry in B.C.”
Clark’s announcement comes against the backdrop of rising criticism of his New Democratic Party government for its management of the slumping British Columbia economy, which is facing disappointing rates of growth and unemployment.
One of Clark’s long-term economic gambits has been the Power for Jobs Initiative, announced last summer, to offer cut-rate power to mining, forestry and smelting companies.
By Dec. 31, 1998, Alcoa will complete a review that will help it decide whether to go ahead with the smelter, which would turn out 250,000 tons of processed aluminum per year.
For its part, the British Columbia government will provide Alcoa with technical background it might require, and negotiate a power contract to meet the company’s needs.
Energy at stake in the province’s jobs initiative consists of 1,400 megawatts of power - enough to supply 500,000 homes a year - available until 2024 under the Columbia River Treaty. The province says the power is worth $5 billion.
Under the deal, new investors would be eligible for the power if they show they will create new jobs.