Alcan selects boss for Coega

Johannesburg - In the strongest indication yet that the proposed $2.7 billion (R19 billion) Coega aluminium smelter will be built, Alcan has begun appointing key managers for the project.

The company has selected a chief executive and, for the first time, it has advertised for a number of key posts at the project as it gears up to construct the smelter.

Robert Valdmanis, a spokesperson for Alcan, said yesterday that the group would be making an announcement "within a month" on the appointment of its chief executive. The incoming officer was a "person of international quality who knows South Africa well", he said. However, he declined to name the incoming chief executive.

Robin Bhar, a UBS base metals analyst, said the selection of the smelter's chief executive was a positive move. "Hopefully this means it's full steam ahead."

Over the past two weeks Alcan has advertised for applications to fill 13 key posts, including seven positions it advertised in the Sunday Times. These positions include communications manager, plant services manager, recruitment co-ordinator, planning area manager, as well as an operation, technical, commissioning and start-up manager.

"We are moving forward [with the project] … We are definitely committed to the project," Valdmanis said.

In due course, Alcan would look to hire more people.

Vuyelwa Qinga-Vika, a Coega Development Corporation (CDC) spokesperson, said the intention was to fill the 13 posts by July.

Alcan and CDC would interview the short-listed candidates.

The last two steps to the start of construction of the smelter are the completion of an engineering study as well as the arranging of project finance.

Valdmanis said Alcan had narrowed down the companies bidding for the Coega engineering study to two. The winner of the process would be announced by midyear.

The engineering study was set to be completed by the middle of next year, with construction to start late in the year. First metal is on the cards for 2010.

The aluminium producer is required by Canadian law to indicate by today if it recommends or rejects Alcoa's offer. Valdmanis said the Alcoa bid had no impact on the development of the Coega project.

Alcoa is expected to sell off some of Alcan's aerospace and automotive assets to win competition authority approval for the merger.

In the weekend advert, Alcan said the smelter would have output capacity of at least 720 000 tons a year and would create 1 000 direct jobs. The smelter could become the world's largest if Alcan exercises an option to extend the facility.

In late November, Eskom and Alcan signed a 25-year power supply contract at the Coega smelter.