VIC: Three candidates for new smelter

AAP General News (Australia)
12-24-1998
VIC: Three candidates for new smelter

MELBOURNE, Dec 24 AAP - The Victorian government was negotiating with three companies
interested in building a magnesium smelter in Victoria, Premier Jeff Kennett said today.

Mr Kennett said his preferred location for a smelter -- estimated to employ more than a
thousand staff -- would be the La Trobe Valley east of Melbourne, which has suffered major
unemployment since the reform of the electricity industry.

"We are very keen for it to go in the La Trobe Valley ... because it would provide a
tremendous boost to that community who have seen massive change over the last ten years in
terms of the electricity industry, but also because it's close to the generation of power," he
told radio 3AW.

Magnesium is important for the car industry because magnesium parts are lighter and
stronger than aluminum parts.

The three companies believed to be interested in building a commercial smelter are Golden
Triangle Resources, Crest Magnesium, and Australian Magnesium Corporation.

The Herald Sun said Golden Triangle was leaning towards the La Trobe Valley as its
preferred site, but Geelong and the south-western coastal town of Portland were also in the
running.

Mr Kennett said the firms were looking at Tasmania and New South Wales as well as Victoria,
and had approached the state government for financial incentives and other assistance.

Industry Minister Mark Birrell was still assessing the requests, he said.

AAP kmh/mh/trm

KEYWORD: SMELTER KENNETT

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