Govt signs for $1B aluminium plant

The Trinidad and Tobago Government yesterday signed a Memorandum of Understanding (MOU) with Alcoa, the largest aluminium plant in the world, for the construction of a state-of-the-art, US$1 billion aluminium smelter. The smelter, which is to be located at Union Estate at La Brea, will have an expected capacity of approximately 25,000 metric tonnes per year. The smelter will receive its power supply from TT’s natural gas fields, converting it into low cost electricity, which will then serve the growth and demand of residential, commercial and industrial customers. Addressing a press conference after the signing, Minister of Energy and Energy Industries, Eric Williams, explained that the construction of the smelter was part of Government’s intention to develop an aluminium industry in the country.

The smelter, he said, would help to facilitate the establishment of a number of downstream industries. Williams said, “One arrangement encompasses primary production and another takes it further downstream and in both instances they are being structured so that there is the availability of local equity partnership. We are developing a value chain here.” The MOU, he continued, stipulated that Alcoa would take on 60 percent ownership of the plant, with the remaining 40 percent being left open for investment from other interested parties. One interested party is Sural Venezuela, which is hoping to use the aluminium from the smelter to promote a number of industries in the automotive sector.

The possibility also exists for the TT Government to take up some of this 40 percent on behalf of the people of Trinidad and Tobago, he revealed. Williams could not provide any figures about how much revenue the Government is hoping to earn from this venture, but he expressed his belief that whatever the amount, it would be considerable. He said, “We have a stated mission to close the gap between our Gross Natural Product (GNP) and our Gross Domestic Product (GDP), and we will certainly be taking those policies into consideration as we structure our commercial business. Williams did note, however, that the smelter would facilitate the creation of a number of jobs for locals, specifically within the area of the plant. It is projected that on completion, the smelter will provide permanent employment for more than 575 persons, with 1,000 additional jobs being available during the construction period. Construction is expected to start next year.