IS THE RIO TINTO SMELTER DEAL DEAD

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Questions are being raised about Rio Tinto, Alcan and its ability to moncler jacket sale be able to construct a new smelter in moncler outlet online Kitimat given the huge debt Rio Tinto amassed in the Alcan buy out.

monlcer down jackets The buy out of Alcan’s shares are cheap moncler outlet quickly closing. monlcer down jackets

Rio Tinto paid a 33% moncler outlet sale premium for the Alcan shares in the $38 billion dollar buy out. Tom Albenese,who was formerly Alcan’s chief but then moved over moncler sale outlet to Rio Tinto, finds himself with moncler outlet https://www.newmoncleroutlet.com store a debt load of about $47 billion dollars. The company will sell some Alcan divisions and come up with about $ 8 billion which will leave them with a debt of $39 billion dollars. That will eat up a staggering $2 billion dollars a year cheap moncler jackets in interest alone.

Industry experts say that in order for the deal to work, long term aluminum prices need to be about $1.26 a pound, the current spot price is $1.15 a pound, and analysts are saying that the long term price will be around 85 cents a pound.

moncler outlet online That is of course unless Rio Tinto is able to freeze up the supply and drive up the price of the product. That, according to the experts, is not likely. moncler outlet online

moncler sale Now what effect will Moncler Outlet this latest move have on the dark clouds that have hung around Kitimat for years? moncler sale

cheap moncler jackets If Rio Tinto wants to snare some big money it could sell its power producing facilities to another source. That would free up needed cash. cheap moncler jackets

moncler outlet sale The Company could order to get the cash flow going simply shut down the Kitimat aluminum smelter as a way to reduce the source of product and simply sell power to the BC Hydro grid that hands them a tidy cash flow. moncler outlet sale

They could also go ahead with the new smelter, but that required $2 billion dollars and the question quickly arises, where will the money come from?

cheap moncler outlet The Kitimat smelter is becoming less and less of a reality as Rio Tinto cheap moncler takes control of Alcan and looks to see from where it can milk some much needed cash. cheap moncler outlet

moncler sale outlet Opinion 250 site where this article originated is at:Adam and Annie? moncler sale outlet

cheap moncler coats moncler factory outlet Comment by Dawna cheap moncler coats Marie Ottenbreit on 18th November 2007 cheap moncler coats

One wonders who you are, arguing to and fro the pros and cons about the future of Alcan. I must admit that the whole issue is beyond me and gets more and more confusing as one reads the papers and tries to comprehend the gravity of the situation.

And no doubt about it, the situation is grim. On one hand we have a company asking us to take them on faith and on the other a wary City Council and Union urging caution.

buy moncler jackets One wonders why Alcan will not formally sign an agreement guaranteeing the smelter remodernization or the building of a smaller, more effecient plant subject to all conditions being met. It appears that even if all conditions are met, final approvement must come from the Rio Tinto Board and who can moncler sale guarantee that will happen? buy moncler jackets

moncler outlet Mayor Wozney and CAW union leader Rick Belmont certainly don want to see Kitimats demise and with no guarantees in place and lucrative power sales in the balance; I say to it guys. We are probably even expected to volunteer and bake for the dragon boat event. Ugh! moncler outlet

I moncler outlet uk enter the debate as I did in Kitimat

cheap moncler Comment by Merv Ritchie on 17th November 2007 cheap moncler

I copy this from moncler jackets outlet the Kitimat daily debate.

Everyone is entitled to there opinion as is everyone else. So here is mine.

moncler mens jackets The water following down our rivers in BC belongs to the people of BC. If we contain this water in a pipe and use the pressure of this free water to produce electricity then that electricity belongs to the people of BC. It is our resource. If someone else constructs the Penstock and the power turbine, then we need to charge them appropriately moncler mens jackets.