Columbia Ventures smelter deal could mean more jobs for BC interior

A deal between Vancouver, Wash.-based Columbia Ventures and the government of British Columbia has paved the way for construction of a primary aluminum production plant in the province.

Construction of the plant, which will likely be located in the town of Trail, could begin as early as 1999. It would represent an investment of US$200 million.

A memorandum of understanding signed by Columbia Ventures and the B.C.

government outlines a process in which the province will assist the aluminum producer with information to help determine the feasibility of potential sites. The planning and feasibility component of the Columbia Ventures study is scheduled for completion by year-end.

According to a B.C. government release, the memorandum of understanding commits Columbia Ventures to:

* conduct a planning and feasibility study for construction of a primary aluminum plant with an output of at least 60,000 tonnes per year, annual demand of a minimum 100 MW of electric power at a 98% load factor, and estimated direct, indirect and induced employment of approximately 450 people;

* include in the study the use of optimum production technologies and controls; and

* rely on B.C.-based goods and services during the design, engineering, construction and operation of the project.

Columbia President Ken Peterson, Jr. says the deal “is the first important step toward identifying an opportunity to develop a project that could bring economic growth and more jobs to the Kootenay region.”

Peterson said his firm is “hopeful” that a plant site in the B.C. interior “will meet the requirements imposed by the global marketplace.” The only aluminum plant operating in B.C. is the Alcan Aluminium plant near Kitimat. Last summer, the province concluded a feasibility study agreement with Alcan regarding the possible construction of a new, $1.2-billion plant in Kitimat. On the basis of the agreement, Alcan returned its existing Kitimat plant to full capacity and has formed a project team to study the proposed new smelter.