Alcan says in no rush to decide on Coega project

Posted On Wednesday, 10 August 2005 02:00 Published by eProp Commercial Property News
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Alcan is taking its time to decide whether to proceed with the $2,5-billion Coega aluminum smelter project in South Africa, the Canadian company's chief executive said yesterday.

 

Property-Housing-ResidentialTravis Engen said Alcan could make a decision this year on the long-delayed 660 000-ton Coega smelter project, but the company is not in a rush.

"On the Coega project, there's been some progress, but there's still a fair amount of work to be done before that can be taken to a point of decision," Engen told Reuters.

"This is a very, very big commitment by anybody who will be involved, so the urgency is to get it right."

In mid-July, the South African government's Industrial Development Corporation said it was ready to take a 15% stake in Coega because it was confident Alcan would go ahead with the project.

Alcan, the world's second-largest maker of primary aluminum, inherited Coega when it took over French rival Pechiney in 2003.

South African power utility Eskom has also agreed to take a stake in Coega and reports have said Russian aluminum producer SUAL is interested.

If Alcan decides to proceed with Coega, located about 20 km from the southern city of Port Elizabeth, construction could begin at the end of 2005 with the first metal being produced in 2008, according to industry estimates.

Last modified on Wednesday, 25 June 2014 18:18

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