Govt
will stand firm on smelters
By Curtis Williams
The Trinidad Guardian
Port Spain
Petroleumworldtt.com
11 12 06
The
Government is unlikely to change its decision to
pursue the construction of aluminium smelters in
Trinidad and Tobago, even if there were compelling
arguments against the proposed Alcoa smelter, well-placed
Cabinet sources have disclosed.
The
Sunday Guardian has learnt there may be a possibility
of the Government yielding to pressure against the
Alcoa smelter, in favour of a smaller smelter being
proposed by a well-known Japanese firm.
In
addition, for the first time the Manufacturers Association
has said it would support the smelter if the environmental
concerns can be addressed and if the country can
be assured there will be continued monitoring of
the operations.
Cabinet
sources told the Sunday Guardian that the PNM government
and its adviser, Prof Ken Julien, are so convinced
that building a manufacturing sector based on metals
is the way forward, that Manning has been willing
to risk the political fallout from the proposed
smelters in this, an election year.
What
is driving the Government on the smelters?
If
this smelter comes to fruition, it would mean that
Patrick Manning would have achieved a dream that
eluded former Prime Minister Dr Eric Williams.
But
as Energy Minister Dr Lenny Saith explained, aluminium
is a crucial part of the Government’s plan
to achieve vision 20/20.
He
said: “We have got to have the building blocks
of a modern industrial country. Steel is one, the
other is aluminium and plastics, and thirdly there
is the need to have a chemical base.”
Saith
reminded how the Government had gone after the various
industries and that on the issue of steel, the Indian
companies Mittal steel and Essar were crucial to
the plans.
“The
idea is to ensure you have steel for construction,
the oil industry and so on,” he said.
Essar
has already announced it will build a US$1.2 billion
plant in T&T and the company is now awaiting
a gas contract from the National Gas Company.
By
the second quarter of next year, a firm decision
is expected on the construction of an ethylene complex,
which is expected to provide the resins for a plastics
and packaging industry.
Saith
reminded that there was already a plastic and packaging
industry in T&T but that it produces essentially
for the local market because of the cost of importing
resins from Taiwan.
On
the question of a chemical base, the Government
has announced several projects going further downstream
of methanol and ammonia such as acetic acid and
melamine.
However,
it is the issue of aluminium and in particular Alcoa
that has so far posed the greatest challenge to
Government’s blueprint for industrial development.
Cabinet
sources said they had been disappointed that the
Government has had to place political capital on
the smelters and yet the potential beneficiaries
have not come out and openly supported the move.
Trade
and Industry Minister Ken Valley told the Sunday
Guardian that the Government had been having informal
talks with the manufacturers telling them of the
need to start looking at possible joint venture
partners to take advantage of the opportunities
should the projects get the green light.
“We
have spoken with the manufacturers about the opportunities
that are available and encouraged them to go out
there and look for joint venture partners because
that is the way forward,” he said.
He
said the Government had been taking along manufacturers
whenever it embarked on trade missions because it
recognised there was a need for local manufacturers
to take their business to a global level.
“The
Caribbean market is now saturated and there is a
need to expand into the international market. We
are hoping they will have the insight to take advantage
of the possibilities,” he said.
Reports
were that eTecK had been mandated to come up with
a business plan for the industry, which included
what were the best products local companies should
get involved in downstream of aluminium.
John
Soo Ping Chow of eTecK’s business development
unit said the company had a “good understanding
of the products that could be manufactured downstream
of aluminium, including cans, bottle caps, ladders
and car parts.” (See box)
Soo
Ping Chow told the Sunday Guardian there was no
way of saying how much aluminium would be enough
for a country this size since that would depend
of how the manufacturing sector “runs with
projects.”
He
said already there had been inquiries from foreign
downstream manufacturers into the possibilities
of setting up plants in T&T but nothing has
been formalised.
Soo
Ping Chow said eTecK wanted to ensure that it had
a good grasp of what would be the best products
and what this country could have a competitive advantage
in.
He
explained: “With the emergence of a smelter
the country will have access to fairly cheap raw
materials including rods that can be used along
the value chain to bring a whole new industry to
this country.”
He
pointed to the example of China, which has become
a world powerhouse in the use of aluminium to buttress
its manufacturing sector.
But
Soo Ping Chow admitted that at the end of the day
it would require leadership from local manufacturers
for this plan to work.
President
of the Manufacturers Association, Paul Quesnel has
said his members were in support of the establishment
of a downstream metal manufacturing industry, but
under certain conditions.
He
said: “The Trinidad and Tobago Manufacturers’
Association wishes to make it clear that it supports
development, and the creation of downstream industries
that can provide sustainable employment to the people
of this country.”
Quesnel
said there was the possibility that “if you
have raw material you can make all kinds of things
from bottle caps to soft drink cans to motor car
rims—even aluminium foil.”
He
questioned, however, how many manufacturers would
be willing to take the risk.
He
said: “The plant and equipment required would
be very expensive. I don’t know how many manufacturers
would have the ability to take that kind of risk.”
Quesnel
said the entry level of investment would be important
in determining who invested.
He
made it clear, however, that the TTMA support was
conditioned on all the factors being taken into
consideration before the project was undertaken.
“The
companies looking to establish the smelters in T&T,
Alcoa and Alutrint have gone to great lengths to
assure the citizens of this country, and in particular
the residents of the south west peninsula, that
the smelters are safe.
“However,
how these smelter plants will affect our quality
of life, our long-term health, as well as the impact
on the environment must be carefully examined,”
Quesnel said.
He
noted that Alcoa claimed its proposed smelter was
designed to capture and recycle more than 98 per
cent of all fluoride emissions, and that it would
ensure that there was an adequate buffer zone between
the smelter and the community.
“Excessive
exposure to fluoride, one of the emissions of a
smelter plant, is well known to cause a bone disease
called skeletal fluorosis.
“It
is therefore imperative that should the aluminium
smelter become a reality, that Alcoa and Alutrint
are properly policed to ensure that they are fulfilling
their promises,” he warned.
The
Trinidad Guardian
Sunday 12th November, 2006
Copyright
©2006 The Trinidad Guardian. All Rights Reserved.
