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 Kurri Kurri smelter needs certainty 

Kurri Kurri smelter needs certainty

06 Feb, 2012 03:00 AM
A SUBCONTRACTOR with Hydro aluminium at Kurri Kurri has confirmed it axed 26 jobs in the wake of the smelter owner’s decision to close its oldest potline.

Union officials are seeking a meeting with Premier Barry O’Farrell to discuss the smelter’s need for a long-term power contract with the government-owned Macquarie Generation, in an effort to bolster the viability of its operations.

Hydro announced last month that it would shed 150 jobs at the site and close Potline 1, amid a strong Australian dollar and low metal prices.

A spokesman for industrial maintenance company Thomas and Coffey, which had about 70 staff on the smelter site, confirmed it made 26 full-time staff redundant in the wake of Hydro’s announcement.

It had retained about 23 non-trade employees and redeployed about 21 tradesmen to other parts of the business in Queensland and elsewhere in the Hunter, the spokesman said.

Australian Workers’ Union Newcastle branch secretary Richard Downie said he would seek a meeting with Mr O’Farrell for himself, Cessnock MP Clayton Barr and union national secretary Paul Howes to discuss the need for the smelter to secure an electricity contract.

In late 2010, the then Labor government blocked Delta Electricity from signing a long-term electricity contract with the smelter’s Norwegian owner Norsk Hydro. Labor thought it could get a better price for its electricity sector partial sale without a contract in place.

Hydro’s current contract will end in 2017, and the company has warned it needs certainty.

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Date: Newest first | Oldest first
Aluminium prices are on an uptrend at $US2250 per tonne against an unsubsidised Chinese cost exceeding $US 2850 per tonne.

The Chinese Government heavily subsidises their smelters. Mr. Combet's Carbon Tax is killing ours by INCREASING costs before the Chinese implement their Carbon Tax!

Chinese smelter ship Bauxite and alumina from Australia, convert it to aluminium with heavily subsidised power made in polluting power plants using Hunter Valley coal.

All that unnecessary transport and pollution!!


Posted by Reformer, 6/02/2012 5:21:48 AM, on The Herald
Time to introduce a small Financial Transaction tax (FTT) on all foreign monies leaving Australia & reduce the Reserve Bank interest rate from 4.25% to 2%.

The FTT would generate about $850 million pa at no cost to Aussie taxpayers.

The reduced interest rate would reduce interest in the Aussie Dollar from US banks n borrowing from the US Reserve bank at 0% & lending to Aussies at 4.25% reaping a tidy profit.

Moreover, local jobs would be protected & the retailing & realty markets would be assisted.

Posted by Machiavelli, 6/02/2012 6:19:50 AM, on The Herald
Downie should also meet with Combet as it's his Co2 tax, once implemented, that risks NSW gas supply from Vic which will convert from brown coal to their own gas which in turn cascades to our power generation to also switch from coal to gas. No gas, no power, or stay with coal and pay more tax. No power guarantees = no contract.

Here we are between a rock and a hard place!

Ideology driven policy from Canberra without any thought on how it will impact to the people, nor do they care. It's about the power, not the people.


Posted by Frank, 6/02/2012 6:31:46 AM, on The Herald
A power deal 2 years ago may have helped. You can close the gate all you like.... The horse has bolted.
Posted by knowsmore, 6/02/2012 10:40:34 AM, on The Herald
I believe the real game has not been exposed yet.

Aluminium smelting is a heavy electricity user. Shut it down and suddenly NSW has surplus electricity supply. Government no longer needs to fund new power stations. Problem solved.

Posted by suspicious, 6/02/2012 12:14:58 PM, on The Herald
It is NOT a Carbon Tax, it is

"The Australian Residents Exploitation Tax",

and if you think that any Government cares just Google Lima Declaration. Started with Gough Whitlam and the car industry, which is almost dead, alongside the dead textile industry.

Posted by Evil triumphs when good men say nothing!, 6/02/2012 4:31:49 PM, on The Herald

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