Sue's Blog

Showing posts with label Jim Baker. Show all posts
Showing posts with label Jim Baker. Show all posts

Monday, September 24, 2007

Read - Reid - Read - to succeed...

Danny Williams is now learning Labrador politics - they no longer want to be a colony of Newfoundland. They will not allow the development of the Lower Churchill unless they are the "primary" beneficiaries. Thanks to them - another townie government will not repeat the Upper Churchill fiasco.

Now it's time for "read - REID - read" to succeed.

It is not possible that column after column - news story after news story - industry publication after industry publication - can be wrong when they state that aluminum chases cost competitive - reliable - renewable - and now my own word "kyotoble" power everywhere in the world but Labrador.

The continued ignorance of our collective elected reps is not acceptable anymore.

Here's another such story out of West Virginia - as Jackson County celebrates the 50th anniversary of its aluminum smelter. READ the Charleston Daily News STORY HERE

Here are a few of the interesting statements and comments in the article:

The Ravenswood plant has 660 employees. The average salary is $50,700. The plant has a $34 million annual payroll.

High energy costs have decimated the smelter industry in the United States, Hale said. In 1974, there were 34 smelters in the United States and they accounted for 34 percent of global aluminum production. Today there are only 13 smelters in the United States and they represent just 7 percent of global production, he said.

Hale said alumina accounts for 37 percent of the plant's costs, while electricity accounts for 26 percent, labor accounts for 16 percent, carbon accounts for 8 percent and other raw materials account for 12 percent.

Because aluminum is a worldwide commodity, Century can't control the price it receives for its product, Hale said. Therefore, the company focuses on costs in order to keep the plant competitive.

Century, like others in the aluminum smelter business, is expanding in locations where power costs are low. Century owns a giant smelter in Iceland powered with electricity generated using hydro and geothermal power. Century plans to have another in plant in operation in Iceland by 2013.

Most of the aluminum produced at Ravenswood is used next door at Alcan Rolled Products' rolling mill. The businesses were established as one unit in 1957, but split into two in 1999. Hale said Century just signed a new contract to supply Alcan through 2009.

Just so that we can feel more assured about this fellow Hale who is quoted throughout the story:

Wayne Hale, Century's executive vice president and chief operating officer and Hale worked here from 1986 to 1989. "It's a place where I learned about people," he said. Hale most recently worked in Moscow, where he oversaw operations at 11 aluminum plants in Russia and Ukraine for Sual-Holding.

If you export the power they will not come - once they understand that to use the superior power of the Lower Churchill they have to set up operations in Labrador - they will come. And as you can see above - the smelter is one piece - then there is the value added secondary production.

There is no argument to export that power - there is only the desire and the determination to use it for industry.

The Leader of the Opposition must do something other than follow Williams on this one - or repeat the mistakes of the Wells - Gibbons energy policy. You see if Williams can demand things of the oil companies and mining companies - he can certainly demand them for Labrador power.

So read Reid read to succeed.

D'oh D'oh D'oh Jim Baker has to go....

There is an interesting topic being discussed re: the Labrador Party - Globe and Mail online - participate and read the comments....


Labrador West is not in good hands with Jim Baker. This PC MHA is toeing the "Danny" line to the peril of Labrador development.

What is this nonsense he speaks about - raising money on the bond markets without customers for Lower Churchill Power - and then excusing the energy plan (pamphlet) failing to provide clean hydro power to other regions in Labrador.

Jim - listen up - whether the customer is a couple of smelters in Labrador or Ontario - it does not matter. Here's the problem - when you ship the power out - even on recall - it is not coming back - industry will go where it is being shipped. Industry will pay a little more for it in Ontario because they will net that cost off the cost of developing supporting infrastructure in Labrador. Then Labrador is left with nothing but whatever revenues St. John's decides to give it for infrastructure they see fit. That's worked really well with the Upper Churchill right?

Here's the choice - make them come to Labrador and use it - and they will - or ship it to places like Ontario where it will be used by industry that will then never come to Labrador - recall or not.

If transmission does not go to other regions of Labrador now - it will not go there in the future as the economies will decrease as industry which could have been attracted to these areas will have already laid roots where the power is exported. Notwithstanding this if you can afford a line to the Island to take off 500 MW's of dirty power - Labrador should not tolerate being left off the grid.

Jim have a look at the line proposed to Newfoundland and see where it stops in Labrador - and you can't take it to the coast? Hogwash! Labrador will be permanently disadvantaged if this energy plan (pamphlet) goes forward.

Labrador West is a success story with industrial projects but there is much more to accomplish both in Lab West and the rest of Labrador. Do not let them export this most valuable resource to other Provinces or States which will use it to power their economies.

And Jim's last argument is the best - Labradorians and Newfoundlanders who oppose this export and lack of transmission in Labrador are just trying to pit one part of the province against the other. Jim - if this plan goes ahead - you will ensure there will never be a united Newfoundland and Labrador.

I wonder Jim - if Danny is so bent on maximising the dollar for the treasury instead of maximising industry in communities adjacent to the power - what will he do when negotiating an extension of the current power contracts for your already existing industry?

There is an interesting topic being discussed re: the Labrador Party - Globe and Mail online - participate and read the comments....