The Trinidad Guardian
Port
Spain
Petroleumworld.com
03 05 06
Energy
Minister Dr Lenny Saith has said that Government decided against
participating in the controversial Alcoa aluminium smelter because
it had already committed itself to an investment in the Alutrin
smelter in La Brea.
In the original
memorandum of understanding, which the Patrick Manning administration
signed with Alcoa, it was agreed that T&T would take a 40
per cent equity share in the plant.
However,
in a recent agreement, it was revealed that Alcoa would take
full ownership of the plant and would build it at Chatham subject
to receiving an environmental clearance certificate from the
Environment Management Authority.
The Energy
Minister said there were several reasons Government had a change
of heart in investing in the project: “We decided to take
an equity share in the Alutrin plant which would see metals
being used downstream and a deepening and widening of the energy
sector. So there was no need to invest in the Alcoa plant since
Government’s interest was assuring that there were metals
available for a downstream industry to evolve.”
Saith said
the Alcoa plant would also go downstream but admitted that some
of the product will be exported as primary product.
He said:
“The size of the Alcoa plant increased from an initial
250,000 tonnes per annum to 315,000 tonnes.
“In
addition the cost of the project moved from US$1 billion to
US$1.6 billion. So the scope of the project has changed and
the government has already been able to secure an adequate supply
of metals for the domestic market. So there was no need to invest.”
Dr Saith explained
Dr Saith
said the Alumina for both plants is expected to come from the
Caricom member countries of Jamaica, Suriname and Guyana.
In
addition, Jamaica has been offered an equity stake in the Alutrin
plant but has not yet made a decision.
