South Africa electricity shortage affect Rio Tinto Coega aluminum smelter project

Rio Tinto said they will review its South Africa aluminum project because of lack of electricity. Rio Tinto aluminum department—Alcan chairman Dick Evans said Rio Tinto will negotiate with South Africa government on electricity problem to support $2.7b aluminum smelter project in Coega. Evans said they will not use this fund only South Africa government ensures they will supply electricity. Rio Tinto expected Coega aluminum smelter will put into production in 2011 but it’s not sure if the power station will completed before 2013. Evans also said that South Africa aluminum smelter output decrease and the close of China aluminum factories may lead to the shortage in 2008 and the price increase.