Plans for Worsley Alumina refinery expansion (Collie) welcomed

21/2/96

Resources Development Minister Colin Barnett has welcomed plans by Worsley Alumina to undertake an $80 million expansion of its refinery near Collie in the South-West of Western Australia.

The Minister said work to stretch capacity of the refinery to produce another 150,000 tonnes of alumina per year was the first step in a major program of investment by Worsley joint venturers.

Work was also underway on a $7 million feasibility study to assess a much larger expansion program set to cost about another $670 million which would further lift capacity to 3.5 million tonnes per annum.

Mr Barnett said the overall expansion could ultimately involve the commitment of more than $750 million and would make the refinery one of the largest in the world.

The first stage expansion would lift annual production from its current level of 1.7 million tonnes of alumina, to 1.85 million tonnes - an increase of six per cent.

Mr Barnett said Worsley recently received environmental approval for an incremental expansion of its refinery which would further optimise operations at the Collie site.

The expanded annual output of 150,000 tonnes would be worth about $200 million at 1994-95 prices.

Work on the first stage expansion was expected to begin within two months and be completed by late 1997.

At its peak, there would be about 100 extra workers involved in its construction.

The Minister said an expansion of the refinery would also be good news for the industry, with such work historically involving about 80 to 85 per cent local content.

Mr Barnett said the project would be an ongoing stimulus to WA's construction and engineering industry as well as the State's economy.

The Minister said that the Worsley partners - Reynolds Australia Alumina Ltd (56 per cent), Billiton Australia Pty Ltd (30 per cent), Kobe Alumina Associates (Australia) Pty Ltd (10 per cent) and Nissho Iwai Alumina Pty Ltd (four per cent) - represented major international companies and their decision confirmed WA's world pre-eminence in the refining of alumina.

Mr Barnett said plans to double the refinery's output were undergoing a full environment assessment.

He said the feasibility study on the overall expansion was expected to be completed by mid this year.

WA currently produces 17 per cent of the world's alumina.

Media contact: Carolyn Vicars 222 9699