MercoPress. South Atlantic News Agency

Rio Tinto/Alcan confirm interest in building aluminium industry in Paraguay

The 2.5 billion US dollar project was discussed in Ottawa between CEO Patrick Tobin and Foreign Affairs minister Hector Lacognata

Rio Tinto Alcan presented the Paraguayan government a project for the construction of an industrial park which is to complement the aluminium plant it is planning to start in the land-locked Mercosur member country.

The Paraguayan Foreign Affairs ministry said in a release that the proposal was formalized by Patrick Tobin, CEO of the company during a meeting with Foreign Affairs minister Hector Lacognata, currently visiting Ottawa.

Rio Tinto besides ratifying interest in investing 2.5 billion US dollars in Paraguay for an aluminium smelter presented the industrial park project for the development of local subsidiary alumnum industries, “an obvious complement for the original investment”.

The plan is to build the smelter to the southeast of Paraguay close to the Itaipú and Yaciretá hydroelectric dams which Paraguay shares with Brazil and Argentina.
The plant is scheduled to begin production in 2016.

If the Rio Tinto/Alcan project finally takes off it would become the country’s major investment project since the construction of the two dams across the river Paraná, shared with Argentina and Brazil.

The Paraguayan Foreign Affairs ministry release mentions that Rio Tinto explores extracts and processes different kinds of minerals and metallic; it has over 90.000 staff world wide in over 50 countries. Alcan is considered the world’s leading corporation in aluminium, with over 150 years of uninterrupted experience in at least 27 different countries.

Rio Tinto/Alcan officials are also in contact with Itaipú hydroelectric dam which would supply the energy. Copper consumers much electricity because of the electrolysis system used for its refining.

“If Alcan decides to establish the smelter close to Itaipu, we are in a position to provide all the necessary energy for the project”, said Gustavo Colas, the Paraguayan representative at the Itaipú bilateral board, the largest operational hydroelectric complex in the world..

The aluminium plant when finished would generate 1.000 direct jobs and another 9.000 indirect.