The trade and industry department insists that Canadian aluminium group Alcan has not lost interest in plans to build a smelter in SA.

Alcan, the world's second-largest producer of aluminium, would decide in June whether to go ahead with plans to build a $2 billion (R12.8 billion) smelter near Port Elizabeth, it said yesterday

An announcement on whether Canadian aluminium producer Alcan would build a $2 billion (R12.8 billion) smelter at the Coega industrial development zone (IDZ) could be expected in May, trade and industry minister Alec Erwin said yesterday.

Twin tasks arise out of the takeover of Pechiney by Canada's Alcan group, which is now calling the shots THE planned $1,2bn aluminium smelter project at Coega in Eastern Cape will have to pass two major hurdles if it is to be saved, it emerged at the weekend.

South Africa's largest industrial development zone (IDZ), the Coega IDZ outside Port Elizabeth, is "ready" if and when Canadian aluminium giant Alcan makes up its mind over the US$2.2bln aluminium smelter project originally agreed by Pechiney to be located there, before Pechiney's takeover by Alcan late last year.

The trade and industry department has confirmed that that minister Alec Erwin met representatives from Alcan and Pechiney, who visited SA last week, to assess the merits of Pechiney's proposed $2,2bn aluminium smelter at Coega.

Alcan comments on the proposed investments

Government and several parastatals made their biggest sales pitch yet last week when they met representatives of Canadian aluminium group Alcan in an effort to sell SA as the destination for a 2,2bn aluminium smelter at Coega in Eastern Cape.

Government says it is pulling out all the stops to secure SA's largest single foreign direct investment to date ahead of a meeting with representatives from Alcan and Pechiney in Gauteng today.

Pechiney - key players in Coega smelters - rejected Alcan offer as insufficient.