Alcan (Rio Tinto ) Free To Sell Power Court Of Appeal Rules
By 250 News
Friday, February 22, 2008 03:23 PM
Kitimat, BC – The BC Court of Appeal has upheld a ruling by the BC Supreme Court allowing Rio Tinto Alcan to sell power from the Kemano hydro station with no obligation to smelt aluminum or support jobs in the Northwest.
In March 2007, the BC Supreme Court ruled that Alcan had no obligation to use the electricity produced at its Kemano generating station for aluminum production or industry; specifically “… there is nothing in [the Industrial Development Act or the 1950 Agreement] that would require Alcan to maintain any specific production level at the Kitimat smelter.”
The District of Kitimat (Kitimat) is placing blame for this resource give-away squarely on the shoulders of the provincial government for siding with Alcan and not protecting the value of the resources leased under the Industrial Development Act. Over fifty years of successive provincial governments shared the common understanding that the Industrial Development Act traded these vast public resources to support industry and communities in the Northwest.
“We are not surprised by the ruling because the provincial government sided with Alcan in court,” says Kitimat Mayor Richard Wozney. “Council will always defend the interests of the people that we were elected to represent. The outcome would have been very different if the provincial government had done the same.”
Wozney says that this ruling undermines the aluminum industry as it now must compete for power with bulk sales to the North American grid. In spite of record prices for aluminum, the company has closed part of its Kitimat smelter and shed 400 jobs in order to sell power. Recently a new massive power sales agreement with BC Hydro was approved by the British Columbia Utility Commission.
“We respect the court’s decision,” says Mayor Wozney, “but we will continue to try and hold Rio Tinto Alcan to account for the many promises they’ve made over the years.”
Wozney says that Rio Tinto Alcan has now achieved its unfettered power sales objectives, for yet another promise to invest in aluminum in Kitimat. “In my almost twenty years as Mayor of Kitimat I have heard many such promises but all the company has done is sold more power.”
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Thank's Gordo,your true colors are showing!
Be afraid...be very afraid!