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.