Aluminium smelter won despite late entry

THE Coega Development Corporation (CDC) was a late entry into the competition to secure an aluminium smelter.

CEO Pepi Silinga explained yesterday that French aluminium company Pechiney had been looking for a site for a new smelter for 18 months when Coega decided it would make a bid to secure the smelter for the industrial development zone.

"We didn't even know whether they would agree to see us, "he said, adding that he had flown to Cape Town with Eastern Cape Development Corporation chief executive officer Mcebisi Jonas in October, 2001, and when they had been given the green light he had flown to France.

That had started the process and "from there we never looked back", he said on the eve of the signing of four agreements that will pave the way for the construction of a $2,7-billion (R20-billion) smelter in the Coega IDZ.

Eventually, despite having entered the race for the smelter late, the Coega IDZ was selected as the "destination of choice".

Negotiations reached the point where an agreement was signed on the port and Pechiney awarded a $600-million (R4,2-billion) contract for the construction of the tender.

"Pechiney wanted certain guarantees from government before the final signing," Silinga said, as not all necessary infrastructure was in place.

But before these could be provided, Alcan made its takeover bid for the French company, meaning negotiations had to start again.