Coega smelter faces more takeover uncertainty

TAKEOVERS ARE are again
raising questions around
the proposed
R18-billion Rio Tinto
aluminium smelter at
Coega.
Originally a project
by Aluminium Pechiney
of France, it was back to
the drawing boards when
Pechiney was bought by
Canadian giant Alcan.
Subsequently, Alcan has
been absorbed by Rio Tinto.
Now Rio Tinto is the
subject of a takeover bid by
BHP Billiton, which already
has aluminium smelters in
KwaZulu/Natal and outside
Maputo in Mozambique. It is
in the process of developing
a third in the Democratic
Republic of Congo.
Business Report said
that BHP Billiton had
“refused to be drawn into
whether it would support
the development of the R18
billion Coega aluminium
smelter if it succeeded in
buying its rival, Rio Tinto”.
BHP chief executive
Marius Kloppers told
Business Report at the
weekend it was “pure
speculation” that the
planned acquisition of Rio
Tinto would jeopardise the
development of the Coega
smelter.
With a number of
investments either about
to start or well advanced
in the pipe-line, Coega is
not as dependent on what
was perceived as its “anchor
tenant” aluminium smelter
two or so years ago.