Decision to be made shortly
ED RICHARDSON
A DELEGATION from Canadian aluminium giant Alcan recently visited South Africa to get first-hand information on the proposed aluminium smelter at Coega outside Port Elizabeth.
The R16-billion project was initiated by the French company, Aluminium Pechiney, which has since been purchased by Alcan.
The Alcan group visited the Coega site and also held talks with trade and industry minister Alec Erwin. According to a statement from Erwin’s office, the minister “took the opportunity to brief Alcan on the investment environment in South Africa and to share information relevant to the company’s decision to invest in the aluminium smelter project at Coega in the Eastern Cape.”
Alcan’s visit was an “information-gathering exercise, and included meetings with prospective shareholders and other role-players,” according to the statement.
Alcan revealed that Pechiney had incurred costs of some 45 million Euros (R382-million) up to September 30 on the smelter project.
It stated “no decision has been made on any of Pechiney’s current investments. The company will announce in due course any decision taken in relation to this review.”
It adds “Alcan will continue to review Pechiney’s current investments and business plans on the basis of assumptions currently used by Alcan.”
The Coega Development Corporation (CDC) has confirmed the visit by the Alcan delegation. Spokesperson Raymond Hartle says the smelter is one of a number of investments being pursued by the CDC.
CDC ceo Pepi Silinga recently said that the CDC expected to have at least “two other investors on site” before the end of 2004.
