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Power deal threat to metal plant Power deal threat to metal plant
(40 minutes later)
Anglesey Aluminium Metal (AAM) has said its plant will turn off its smelter in September, after failing to secure a deal to supply electricity.Anglesey Aluminium Metal (AAM) has said its plant will turn off its smelter in September, after failing to secure a deal to supply electricity.
The operation is one of the largest employers in north west Wales, with more than 500 staff at the Holyhead site.The operation is one of the largest employers in north west Wales, with more than 500 staff at the Holyhead site.
The smelting operation currently relies on electricity produced by nearby Wylfa nuclear power station.The smelting operation currently relies on electricity produced by nearby Wylfa nuclear power station.
Wylfa is due to close next year and no decision has been made on replacing it.Wylfa is due to close next year and no decision has been made on replacing it.
The aluminium operation uses 12% of all the electricity supplied to Wales, and is believed to be the biggest single user of electricity in Britain.The aluminium operation uses 12% of all the electricity supplied to Wales, and is believed to be the biggest single user of electricity in Britain.
But with the planned closure of Wylfa's nuclear plant in 2010, AAM has been forced to examine other power supply options.But with the planned closure of Wylfa's nuclear plant in 2010, AAM has been forced to examine other power supply options.
Evaluate activities
In a statement on Thursay, the joint owners of the metal plant, Rio Tinto Alcan and Kaiser Aluminum said it anticipates that smelting operations will end in September 2009, when its current power supply contract finishes.In a statement on Thursay, the joint owners of the metal plant, Rio Tinto Alcan and Kaiser Aluminum said it anticipates that smelting operations will end in September 2009, when its current power supply contract finishes.
The company said it will now enter consultation with staff, but has yet to outline how many jobs are under threat.The company said it will now enter consultation with staff, but has yet to outline how many jobs are under threat.
However, AAM said it would "evaluate alternative operating activities" at the plant, including the continuation of remelt and casting operations at Anglesey.However, AAM said it would "evaluate alternative operating activities" at the plant, including the continuation of remelt and casting operations at Anglesey.
David Bloor, managing director of Anglesey Aluminium, said: "We have worked hard over many months in our efforts to extend the existing power contract beyond September of this year but have not yet been successful."David Bloor, managing director of Anglesey Aluminium, said: "We have worked hard over many months in our efforts to extend the existing power contract beyond September of this year but have not yet been successful."
"The operation is dependent for its power on the nearby Wylfa nuclear power station which is itself due for closure within the next few years."The operation is dependent for its power on the nearby Wylfa nuclear power station which is itself due for closure within the next few years.
Affordable power
"We are fully aware of the significant impact on the workforce and on the local community and will work with partners and stakeholders to develop other long term options in line with existing operations, the needs of the local community, and the economic market situation.""We are fully aware of the significant impact on the workforce and on the local community and will work with partners and stakeholders to develop other long term options in line with existing operations, the needs of the local community, and the economic market situation."
The company also said it would continue to "pursue alternative sources of affordable power".The company also said it would continue to "pursue alternative sources of affordable power".
However it stressed that "no sources have yet been identified" that would allow smelting operations at the plant to continue.However it stressed that "no sources have yet been identified" that would allow smelting operations at the plant to continue.
A Welsh Assembly Government spokesperson said officials and colleagues from the Department for Business Enterprise and Regulatory Reform were working closely with Anglesey Aluminium's management "to look carefully at every possibility of securing new arrangements for the plant's power supply".
"There is a range of options to examine, and we are determined to explore every possible means to continue operations beyond the end of its current energy contract with Wylfa power station," the spokesperson added.