Vol. 363 No. 1
asked the Minister for Energy if he will make a statement on the progress made to date on the negotiations on natural gas supplies for Aughinish Alumina Limited, Askeaton, County Limerick; the ministerial meetings which have taken place to date on this issue; the Ministers involved; and when it is expected that negotiations will be concluded.
59.
asked the Minister for Energy the outcome of recent discussions between Aughinish Alumina Limited, Askeaton, County Limerick, and officials of his Department, with a view to reducing the cost of energy to the company; and if he is aware of the need for some practical assistance to this company at the present time to maintain 800 jobs and a contribution of over £30 million to the economy.
I propose to take Questions Nos. 58 and 59 together.
I am aware of the difficulties being experienced by Aughinish Alumina Limited, arising out of the very large cost overrun in the construction of the plant and the subsequent fall in metal prices. The Minister for Industry, Trade, Commerce and Tourism and I met with representatives of AAL on 14 November last. Another meeting is planned for later this month. In the meantime there are on-going contracts at official level with AAL with a view to ascertaining if a solution can be found.
It is clear from the report of the working group, which was set up under the aegis of the Minister for Industry, Trade, Commerce and Tourism to investigate the difficulties facing the company, that the major problems at Aughinish have been caused by the worldwide depression in the alumina market which have not been matched at AAL by parallel decreases on the cost side — the major cost item is the bauxite raw material. AAL have requested, by way of assistance to reduce their costs, a very large allocation of natural gas at prices per therm below that at which they buy their heavy fuel oil on the world market. Natural gas may not be the only option; all possibilities are being examined.
