1969: Bluff smelter deal signed

6 September, WELLINGTON: About nine years of informal and formal negotiations between the New Zealand Government and Comalco Industries of Australia were brought to a climax here yesterday when an agreement was signed for the construction of a planned $100 million aluminium smelter at Bluff.

Comalco together with two Japanese companies - Showa Denki K.K. and Sumitomo Chemical Co., Ltd - formed a New Zealand incorporated company, New Zealand Aluminium Smelters, Ltd. (N.Z.A.S.), to build and operate the smelter.

The presidents of the three companies, Mr D. J. Hibberd, of Comalco, Mr M. Anzai, of Showa Denko, and Mr Hasegawa, of Sumitomo, and the Minister of Industries and Commerce, the Rt Hon J. R. Marshall, signed the agreement yesterday in the presence of Government and company officials and a large gathering of reporters.

The smelter is to be constructed in two stages - initially to 73,000 tons capacity and then to 110,000 tons - and will be designed so that it can be readily expanded to a capacity of 220,000 tons.

The total investment in the smelter - one of the most advanced and largest aluminium smelters in the world - is expected to be $100 million and at least half of this amount will be spent in New Zealand.

The initial plant is due to produce its first aluminium in mid-1971.

The agreement provides Comalco with a 50 percent equity in the new company, with the two Japanese corporations holding 25 percent each.

At a combined press conference after the signing ceremony both Mr Marshall and Mr Hibberd confirmed that the New Zealand Government had been given assurances from Comalco that "at the appropriate time" provision would be made for New Zealand equity participation.

They said a lasting benefit of the project to New Zealand would be the creation of new skills, and when at the 110,000-ton stage, the smelter would give permanent employment for about 700 New Zealanders.

The new company plans the fullest participation by New Zealanders both in the management and operation of the smelter. Training programmes would be instituted for New Zealanders in both trade and technical fields and already some had been employed and were undergoing training in Australia.

 

 

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