Alcan appoints Hegger to head SA smelter

Alcan Inc, the world's third- largest aluminium producer, appointed Brent Hegger as CEO of its Coega smelter project in South Africa.

He played a key role ``in the construction of several aluminium smelters in Africa, making him the natural choice'', Alcan Vice-President Business Development and Technology, Equipment, Sales and Services, Yvon D'Anjou, said today in a statement to PR Newswire.

While at SNC-Lavalin Group Inc., Hegger worked on BHP Billiton Ltd.'s Mozal aluminium smelter in Mozambique. He was also project director of the Komi Aluminium Project for Sual Group, which earlier this year merged with OAO Russian Aluminium to form the world's biggest producer of the metal.

The $2,7bn Coega project is due to start production in 2010, Montreal-based Alcan said. Construction on the 720 000 metric tons-a-year plant on the country's southeast coast will start next year. Alcan is cutting spending in the US and Europe to build smelters in countries such as South Africa that offer cheaper power, which can account for a third of costs.

Talks with potential partners and building contractors for the project are advanced, Alcan said. Sixty percent of the investment required will be project financed, it added.

Alcan said November 24 it will keep between 25 and 40% of the plant and is seeking partners for the rest. South Africa's state-owned Industrial Development Corp and power company Eskom Holdings have said they will take a stake in the project.

Alcoa, planning to take over Alcan to create the world's biggest aluminium producer, said in a May 17 letter to Alcan that it intends keeping the South African project. Alcan has rejected Alcoa's $26,9bn offer.