‘Powered’ Coega aluminium smelter viable – Rio Tinto

The construction of an aluminium smelter at Coega in South Africa was a “viable opportunity” and the company was “all for” supporting the development of a power generation plant from its “attractive” energy coal discovery in South Africa’s Limpopo province, Rio Tinto CEO Tom Albanese said on Tuesday. Albanese told Engineering News Online – a London conference call announcing record 73%-up first-half earnings before interest, tax, depreciation and amortisation (ebitda) of $11,4-billion – that Rio Tinto continued to be engaged in discussions with South Africa’s Eskom and the South African government on the aluminium-smelter project. “I wouldn’t want to pour cold water on it,” Albanese said, although he would have to see the necessary power plant being built and the necessary power lines being constructed to the smelter site. “We recognise the importance of the project to the Port Elizabeth area, and I look forward to that power generation coming on line,” he added. Albanese was also “all for” supporting the development of a power generation opportunity that could create a viable opportunity for Coega. He said that Rio Tinto had discovered a billion-ton open-pittable thermal coal project in northern Limpopo. “I think that is an attractive project and perhaps that will be part of the South African energy solution. I would hope so,” he said in response to questions from Engineering News Online. He said that strong underlying Chinese demand for aluminium would increase this year by 18% to 14,5-million tons. The reality had borne out an aluminium performance better than analysts’ forecasts at the time of the Rio Tinto-Alcan transaction, which was contract to deliver synergies of $1,1-billion after-tax from 2009. He described Rio Tinto as being “in tremendous shape” with “excellent earnings momentum” and “record” investment. Source: engineeringnews