Coega gets top visit boost

By Patrick Cull Political Correspondent

IN another significant step forward towards final agreement on the construction of a R16-billion aluminium smelter in the Coega Industrial Development Zone, a high-level team from giant Canadian company Alcan arrived in Port Elizabeth yesterday.

This is the first visit by Alcan since it took over the French company Pechiney, which was involved in final discussions with the Coega Development Corporation on the smelter.

If Alcan gives the go-ahead for the project, it will be the biggest single foreign direct investment in the history of the country and will create thousands of direct and indirect jobs.

Alcan has made it clear that it will review all Pechiney projects, including Coega, which is the preferred site for the smelter.

And observers say that if Alcan decides to go ahead and the re-entry of General Motors into Port Elizabeth is finalised, as is reported to be imminent, this could see the re-ignition of the relationship between the “Detroit of South Africa” and North America that existed some 20 years ago.

The Alcan team are in the city for what is being described as a “working visit”, with two of the members, projects general manager Jean-Pierre Boucard and technical general manager Jean-Luc Faudou, already familiar with the project as they were appointed to the Alcan board from Pechiney.

The other members are vice-president and financial controller John Zbarsky, business development vice-president Gilles Regazonni, energy resources senior manager Petr Holcak, and business planning and development executive Hal Spender.

The team met CDC chairman Moss Ngoasheng yesterday. Today they are scheduled to receive a series of briefings on the Coega project from CEO Pepi Silinga and his senior staff.

Prior to the takeover by Alcan, Pechiney had signed an agreement with the National Ports Authority with regard to the construction of the R2,6-billion deep-water port and with Eskom for the installation of R1,8-billion in electrical infrastructure for the supply of power for the huge smelter.

In addition, the Industrial Development Corporation is committed to taking a 12,5 per cent stake in the smelter, as is Eskom.

CDC spokesman Vuyelwa Vika confirmed yesterday that Alcan would be meeting the CDC and undertaking a site visit, but stressed that it was a “normal working visit”.

The Alcan team is scheduled to meet representatives of the IDC and Eskom in Johannesburg tomorrow.

It is understood that President Thabo Mbeki raised the issue of the Coega project when he paid a State visit to Canada late last year.

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