Smelter
agreement signed by Saith, Saith and Alcoa
The
Trinidad Guardian
Port
Spain
Petroleumworldtt.com
12 17 06
Alcoa
will receive a minimum 30-year lease—with
option to renew for an additional 30 years—for
use of 510 acres of land at Cape de Ville in south
Trinidad for its aluminium smelter project, once
the Government gives final approval for this.
That
is part of a four-page agreement in principle on
the smelter issue, signed by the National Energy
Corporation (NEC), the Government and Alcoa on February
14, 2006.
Signatories
to the Valentine’s Day agreement were Minister
of Energy Dr Lenny Saith, NEC chairman Prakash Saith—Lenny
Saith’s brother—and Jerome Maxwell,
on behalf of Alcoa.
Minister
Saith presented the agreement in the Senate yesterday—minus
what he described as “sensitive” confidential
aspects.
However,
UNC Senator Wade Mark declared the situation a “cover-up.”
Under
the agreement, the NEC will have to acquire—through
purchase, other agreements and “actions”—the
1,500-acre site on which the Alcoa aluminium smelter
will be located at the Cape de Ville estate.
According
to the document, NEC will enter the lease with Alcoa
for 450 acres for the construction and operation
of smelting facilities and approximately 60 acres
for a power plant.
Alcoa
will receive “economic relief at the “maximum
level “ and will receive “no less beneficial
or advantageous fiscal and tax treatments than any
industrial aluminium facilities now in T&T.”
Alcoa
has committed to comply with all “internationally
accepted standards for the protection of the environment”
in its use of the site.
According
to the agreement (3.7) in the event of any “Force
Majeure”—strikes, lock-outs, insurrection,
civil war, rebellion, invasion, hostilities or other
industrial disputes—which affect the performance
of a party’s obligations, the party will have
a period of time to remedy the cause.
Saith
explained that in 2004 the Government authorised
the NEC, in conjunction with Sural—an independent
aluminium fabrication company headquartered in Venezuela—to
invite Alcoa to participate locally in aluminium
industry development.
The
NEC, Sural and Alcoa in May 2004 executed a one-year
Memorandum of Understanding, to explore the feasibility
of an aluminium smelter facility with a target capacity
of 250,000 metric tonnes annually. Estimated cost
was US$1 billion.
Saith
said: “However, in January 2005, SURAL and
Alcoa sought variations to the project. Alcoa requested
that the project scope be increased to 341,000 metric
tonnes annually. Alcoa indicated it was prepared
to undertake the project on its own and also source
financing of the capital estimated at US$1.6 billion.”
He
said Sural proposed to the Government, “And
without prejudice to the Alcoa project,” a
smaller smelter with a capacity of 125,00 metric
tonnes annually.
(GA)
The
Trinidad Guardian
Wednesday 13th December, 2006
Copyright
©2006 The Trinidad Guardian. All Rights Reserved.
