Worsley Alumina's expansion project in SW a boost for economy

9/9/97

Today's announcement by Worsley Alumina Pty Ltd to commit $800 million to a massive expansion project to almost double its operations in the South-West is a significant boost to Western Australia's economy.

Speaking today at the official announcement by the joint venture company, WA's Resources Development Minister Colin Barnett said the expansion project near Collie in the South-West was of great significance to the State's resources industry.

The project, due to commence in October and scheduled for completion in early 2000, will lift Worsley's alumina output from 1.7 million tonnes to 3.1 million tonnes per annum.

"The refinery and mine expansion will be the largest construction project in the South-West for more than a decade," Mr Barnett said.

"It is anticipated that 1,000 people will be employed during peak construction and more than 150 permanent jobs will be created on site.

"Historically, the local content levels for alumina refineries have exceeded 80 per cent, which means there will also be significant flow-on benefits for local enterprises, such as steel and fabrication companies.

"It is pleasing to see major international companies recognise WA as a competitive location for expansion activities - a resounding vote of confidence in the State."

Mr Barnett said the intended construction managers, Kaiser Bechtel Joint Venture, would establish a recruitment and training office in Bunbury to maximise local employment opportunities on the project.

In what was also believed to be a first for WA, Mr Barnett said Kaiser Bechtel Joint Venture, the WA Trades and Labor Council and construction unions had agreed to a landmark industrial understanding.

"It is a credit to all of the parties concerned that they have reached agreement for this very important project," the Minister said.

"The signing and registration of a pre-construction agreement between the parties will signal industrial harmony and, I'm confident, will be a blueprint for future major construction projects."

Mr Barnett said he had worked closely with Worsley Alumina to amend the Alumina Refinery (Worsley) Agreement Act in State Parliament in 1995 to allow the expansion project's conveyor belt to comply with environmental noise regulations.

The project will also see an Australian 'first' with the building of a gas-fired cogeneration facility to power the expanded operations.

Fletcher Challenge Energy and Western Power have joined together in a 50:50 joint venture to be known as the South West Cogeneration Joint Venture to own the facility.

"It is the first time anywhere in Australia that a Government-owned utility and a private company have joined forces to generate electricity," Mr Barnett said.

"The South West Cogeneration Joint Venture will direct the exhaust gases from a newly-installed 120 megawatt gas turbine into a heat recovery steam generator to raise an additional 200 tonnes of steam per hour for use in the alumina refinery expansion. Extra power will be sold into the Western Power electricity grid."

Since the early 1960s, the alumina industry has been one of the mainsprings of the WA economy. In the last financial year, alumina worth more than $1.96 billion was produced in WA, equivalent to one fifth of the world's production.

In addition, the industry directly employs almost 6,000 Western Australians and several times that number in related industries. Worsley Alumina, as a major employer in WA, spends approximately $75 million each year in the South-West through salaries, and goods and services.

Media contact: Justine Whittome (08) 9222 9699