Power plant ‘staying’ despite smelter future: Alcoa ‘grid plan’ revealed

By John Van Klaveren
ALCOA’S Anglesea power station will continue operating even the company closes its Pt Henry smelter, a spokesperson has confirmed.
The prospect has alarmed environmentalists who fear operations at the brown coal-fired plant could expand to supply Victoria’s power grid.
Alcoa’s smelter has been under review since last month, with the company Alcoa promising a decision by June. Alcoa said high input costs and low world alumina prices had prompted the review, putting 600 jobs in limbo.
An Alcoa spokesperson said the company would talk to power station “stakeholders” if the smelter was closed.
“If the decision is taken to change the function of the Pt Henry smelter, Anglesea can operate as a stand-alone facility,” she said.
Geelong Environment Council president Joan Lindros said she was told at an Alcoa community advisory committee that the power station would sell its electricity if the smelter was mothballed.
“We were told that if the smelter does shut down the mine will continue and power produced will be sold to the grid.
“That really rang alarm bells because it also appears to leave open the option for Alcoa to sell the power station as an operating concern.
“The whole process is outrageous because Alcoa knew the smelter was under financial stress when the Anglesea lease was renewed for another 50 years.
“The whole process is so cynical, economically driven and money grabbing.”
Surf Coast Energy Group president Caroline Hawkins said the power station should also close if Alcoa abandoned the smelter .
“At the time the new lease was being negotiated the energy minister told us it was important to keep the Anglesea mine to support jobs in Geelong,” Ms Hawkins said.
“Now we learn that even if that is no longer the case, it’s being allowed to continue.
“The new lease included a relaxed clause that said the power station could continue as long as aluminium smelting occurred in Victoria.
“Previously it had been linked specifically to Pt Henry. This just doesn’t look right.
“Victorians will pay for electricity subsidies to keep Anglesea going even if there is no Pt Henry smelter.”
Anglesea Air Action spokesman Mike Lawrence said the community had hoped Alcoa would shut down the power station if the smelter closed.
“If they keep the power station open and close Pt Henry then Alcoa and State Government have got it the wrong way around,” Mr Lawrence said.
“Alcoa must have a very sweet deal into the energy market.”