New Smelter In the Works for Kitimat

Sunday, August 13, 2006 06:29 PM

Energy Minister Richard Neufeld will announce in Kitimat tomorrow the construction of a new aluminum smelter for Kitimat.

The new smelter will have a capacity of 400,000 tonnes annually. The original plan announced in 2001 was for a 550,000 ton smelter and residents say the new smelter will operate with 700 fewer jobs. That cut is in addition to the 350 jobs that already have been cut.

When the new mill is constructed, Alcan will be able to free up about 140MW firm of electrical power and over 200 MW average if the Kenny Dam cold water release facility is constructed.

Critics say that means that while the city will receive a boost in employment while the smelter is being built, the long term impact is the loss of over 1000 jobs and their $50 million dollar payroll.

Earlier this year John Rustad MLA announced the province will contribute $120,000 to the Nechako Watershed Council for studies into the cold water release facility.

The provincial government has committed $50 million to the project while Alcan will contribute a further $50 million.

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Posted on Sunday, August 13, 2006 06:29 PM in News by 250 News

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Comments

Posted by: diplomat on August 13 2006 7:24 PM

Since the old Soderberg smelting process is too inefficient the old smelter will in all likelihood be converted to a newer more efficient, less polluting and less labour intensive smelter, at least that is what Alcan has announced previously.

So it looks like it will not be a "new" smelter in the sense of "in addition to" the old existing one.

Still, Kitimat will remain on the map for another 50 years or more and provide secure and high paying jobs for a thousand employees.

Not too shabby, in my opinion.

Posted by: Chadermando on August 13 2006 10:50 PM

What is 140-200 MW worth at current prices?

That is the provincial tax payer subsidization to Alcan each year for a token 1000 jobs and an air shed to pollute.

I would be willing to bet the province forgoes Alcan a million dollars for every employee Alcan ensures employment for through this indirect subsidy. We might as well call it corporate welfare for foreign multinationals where we pay them ten times over for the privilege of a few jobs, and a place to pollute.

The cold release should be built but only under the ownership of BC Hydro. Alcan should get a good rate for the jobs they create, but they should not be in the business of managing the watershed for profit. That is for government to take responsibility and the profits that come with it, not foreign multinationals.

Apparently all our politicians are bought easily or they would be taking a stand on issues like this IMO....

I also wonder what the foreign multinationals like Alcan contribute in political donations to elections in Canada. Directly and indirectly. I bet Vancouver politicians are an easy sell.

Posted by: Chadermando on August 13 2006 11:01 PM

Now would be the time to see if the Alcan investment is genuine or not, by taking the time now to insist on British Columbian sovereignty over all our water-sheds as well as the managment and profit regulation potential of this resource.