Greenland prepares for an aluminum smelter and the thousands of long-term jobs associated with it. That's right Newfoundland and Labrador GREENLAND will get the smelter based on hydroelectric power. They will join Norway, Iceland, Russia, and Quebec to name a few - that use hydroelectric power to attract significant industry.What is the problem with Labrador? The only thing holding Labrador back is the government that is sitting at the Confederation building.
When will we elect competent people - who then will employ competent people - to negotiate and attract energy hungry customers that set up shop in the jurisdictions where the power is located?
Below you will see a couple of slides from an assessment completed for Greenland on the viability of using their hydropower for an aluminum smelter.
In that assessment there was also a review of long-term contracts with hydro producing jurisdictions - and even though they were signed off in the 1960's - there was an escalator clause. Go figure - our geniuses missed that as well - they will tell you they could not have anticipated the value of hydro increasing so much. Then as with now - we are not using the best of our population to either sit as an elected member or to act as professional negotiators. WE ARE NOT USING VISIONARIES - WE ARE USING WEAK - IGNORANT PEOPLE WHO WILL SELL OFF OUR FUTURE YET AGAIN.
Funny enough - the opposition now is like the opposition when the Upper Churchill was developed - they shut their mouths and wait for the deal to be done. Stop this Legacy of Shame - get involved.
Summary - Demand
• Demand for primary aluminium is set to grow at 3.7% annually till 2030, driven by a strong
Chinese market.
• By 2020, Chinese intensity of aluminium use will match the level of the developed economies and
keep rising – it is estimated that by 2030, China will account for over 42% of global demand.
• Transportation will be the key sector for growth, with strong off-take in the automotive and
aerospace industries.
Summary – Energy & Power
• Power represents 26.8% of current business operating costs for smelters.
• Aluminium is essentially packaged energy.
• Power cost is the key competitive factor for an aluminium smelter.
• Power tariffs are particularly an issue in India and China, where costs are considerably higher than elsewhere due to soaring demand.
• Low power cost regions are becoming increasingly difficult to find
I wonder where our similar assessments are?
