AB - The Terrace Standard, Wednesday, September 18, 2002

From front

Smelter’s costs are high — Alcan.

employ close to the same
number of people as today. |

Prokopanka repeatedly
referred to the Kitimat
smelter as one of Alcan’s
most expensive smelters.

“It’s not quite the high-
est cost, but it’s pretty
close,” he said. “It’s an
extremely high cost
smelter.”

He said that’s the result
of older technology and
the long shipping distance.

Prokopanko said a com-

pany-wide review of all :

operations is underway to
identify assets that aren't’
maximizing their value,
and either improve their
performance or liquidate
non-performers.

However Kitimat offi-
cials contend Alcan in es-
sence uses voodoo ac-
counting to turn profits into
losses here, manufacturing
a crisis that doesn’t exist
to scare Victoria: into sub-
mission.

Under questioning, Pro-
kopanko admitted the
company’s accountants:
charge the Kitimat smelter.
more — on paper — for Ke--
mano power than it casts
to produce.

He wouldn’t say what
rate is used, but Kitimat
manager Trafford Hall
maintains the smelter is
paying market rates —
about six times what the
energy actually costs
Alcan to produce.

“They’re attempting to
show the smelter is a loser
to create the impression
the smelter is threatened,
so the government is de-
sperate,” Hall said.

“If you lead the other
side to believe there’s a
crisis and they stand to
lose everything, they're
much more willing to ac-
cept much less than they
would otherwise.”

Hail said it’s not sur-
prising charging market
tates turns Kitimat into a
high cost smelter.

He also noted running
at half capacity: but full
employment would also
have hammered the smel-
ter’s financial perfor-
mance.

“Run it at full capacity
and at Kemano cost power
as it was designed to run
and this smelter makes a
lot of money,” he said, es-
timating a potential profit
of $450,000 a day at cur-
rent prices. .

Kitimat councillor
Joanne Monaghan said the
company further com-
pounds the appearance of
inefficiency here by not

cost of making aluminum
in $950, but that has de-
clined to around 35 to dO
per cent while other costs
such as labour have tisen.

“Even if we use the re-
duced price of power, it's
still an expensive
operation,” he said.

He said the company is
now making decisions on
the premise it will get the
best possible price for any
power it produces.

It’s difficult to price
Kemano power, he said,
because sales are limited
by the roughly 300 mege-

‘watts that can be transmit-

ted through power lines to
Terrace right now.

“Yes we could enhance -

that line maybe,” he said.
“You have to have an en-
vironmental assessment.

You have to. have com-.

munity support. These are
the things you have to

. consider.”

He said Alcan now
realizes some things may
be legally possible but po-
litically impossible.

Even if the company
could sell all its power to
California, he doubted it
would happen.

“I don’t think the gov-.
emment would ever allow -
us to do that,” he said. “It —
would cause us to shut
down the plant and that’s

shot necessarily what we

are thinking about doing
~—at ail.”

Questioners pressed
Prokopanko on why,.’
Alcan’s smelter mcderni- .
zation here waits while the
company reinvests in Que-

- bec plants.

Profits taken out of this

Tegion are reinvested
where it makes the most
sense, he said. , ’

“There is an Olympic
conipetition going on in
Alcan for resources,” he-
said. ,

Prokopanko also high-.
lighted Alcan’s contribu-
tions to the region and the ,
province, including its
$250,000 contribution to-
wards B.C.’s 2010 Olympic
bid.

“Why would Alcan
want to see anything hap-
pen to Kitimat?” he asked,
“That’s why we’re pushing
this Olympic thing — to
make this a belter place
for us all to live.”

Hall said Alean’s lavish
spending to aid the Olym-
pic bid is part of a strategy
that’s working. = the oro-

vince isn’t taking a stand
agains! power sales.

“The Olympic bid is a
real important project to
Mr. Campbell,” Hall
added. “The premier was
personally on stage with
Alean executives unveil-
ing the Alcan Spirit of
2010 initiative.”

Terrace ‘accountant
Donna Demers said Proko-
panko’s “presentation un-
derscored the need to press
Victoria to act. 7

“It left me with as
many questions as I had to
start with,” Demers said.
“Alcan’s going to stay
here. The question is at
what level will they stay
and that’s going to be de-
termined by what the gov-
emment says about those

power sales.”

The Terrace Air Cadet Society will
be holding their

ANNUAL GENERAL MEETING

on OCTOBER 10th at 7 p.m, atthe

Terrace Air Cadet Hall.
All parents are asked to attend.

Your Personal &
Family-Counselling Centre

EXPERIENCED
COUNSELLOR
> PROVIDING

One-On-One Counselling
Family & Group Counselling
Seminars & Workshops

Mon. to Fri, * 10 a.m.-5 p.m.

| . 4665 Lazelle Ave., Suite 202,
: Terrace, B.C. VG 158
ph (250) 615-5528

Fox: (250) 615-5548
Email: encouraga@telus.net

coPRncen,
© cOUNSELUNG

Take advantage of the best deals we've ever offered on some of the best cars, trucks, minivans and SUVs we've ever made.
And all topped with the best protection in the business. Our 7 year/115,000 km powertrain warranty and 24 hour roadside assistance.

Cash Savings

on selected models

Starting from .

NOPAYMENTS .-_

FOR UP TOG MO
ON ALL 2002 NEON M

Dodge Caravan

including profits from the Chrysler Neon
recent power sales on the
Kitimat smelter’s books.
Instead, she said, those.
profits are attributed to:
operations in Quebec,
Prokopanko was asked
why Alcan considered

$23,688

or lease the Caravan SE with
Quad Convenience Package for

$298

Lease this vehicte loz

$733 |

a manth for 43 months.

“a With $2,495 downpaymant
cheap power a competitive crequivatenttrade, a month for 43 months. With $4,450
advantage for the company Plus $275 security deposit. downpayment or aquivalent trade. Plus

ta locate here 50 years: $730 (reight included. S350 security deposit. $995 freight included.

ago, but doesn’t take it
into account in its ac-. .
counting and decision-
making today. .
He said power made up,
about 50 per cent of the

Chrysler Sebring

Jeep Grand Cherokee

Loase this vehicle for

273

Lense this vehicle for

7Y¥aars or 115,000 km angine
and transmission warranty,
Plus 24-hour
Roadside Assistanca.'

a month for 48 months. a month for 48 months,

‘ With $3,993 downpayment With $3,959 downpayment
craquivalent trade, or equivalent trade.
Plus $325 security deposit,

Plus $525 security deposit.

$050 freight included. $876 freight included,

DODGE Jeep

VISIT YOUR NEIGHBOURHOOD CHRYSLER, DoonGeE, JEEP, DEALER OR DAIMLERCHRYSLER.CA
Wise customers read the fine print: *, “, “*, ¢, o, 0 These are limited time offers which may not be combined or used in combination with any olher offers excapt Graduate Rebale. Daaler trade ‘may ba
' necessary, Sea dealer for complele detalls and conditions, ', 9 Leases/financing subjact to approval by DaimlerChrysler Financial Services, 9 Leases exclude licence, taxas, insurance and registration. Leasa the

2002 Chrysler, Dodge, Jeep vehicles equipped as described: Chrysler Nean 240+WJB, Chrysler Sebring Sedan 24H+WNB, Dodge Caravan 28D+ALS: Jeep Grand Cherokee Laredo 266, Based ona 48-monlh
lease. Total lease chligatlon/leasa finance interest rate is; $19,924/0.8% Neon; $17,428/2.8% Sebring Sedan; $19,104/2.8% Caravan: $25,452/2.8% Jaap Grand Cherokee. Kilometres limited ta 81,600; charge
of $0.15/km for excess kilometres, «» Cash purchase price for the 2002 Dodge Caravan 28D model only, Cash purchase price Includes factory to dealer incentives and is applicable to cash purchases only, Cash

‘ purchase price excludes Irelght, taxes, licence, Insurance and registration. {f consumer chooses 0% purchase financing then the negotiated price may be higher. See dealer for complete details, *0% purchase
Northwest Smile financing on selected 2002 Chryster, Dodge, Jeep vehicles up to 36-months. Example: $20,000/$30,000 @ 0% APA/36-manth term; manthly payment is $655,55/$633.93, Cost of borowing is $0. Total obligation
D ‘ c te is $20,000/$30,000, 0% purchase financing most 2002 Chrysler, Dodge, Jeep models up to 60-months, Example: $40,000 @ 0% APR/60-month term; monthly payment 's $666.66, Cast of borrowing is $0.
esign enrer : Total obligation Is $40,000. The effective interest rate, taking into account the $1,500 - $3,000 savings that consumers who choose the 0% financing will forge varies dapending an amount financed, a
DP A. Clini fac term of agreement and amount of factary to dealer incentives. Example: $20,000 @ 0% APR/SG-month term, taking into account the $3,000 savings consumers who choose the 0% financing will war
aa ee forgo is 8.4%, and the eifective cost of borrowing Is $3,000. ‘“ No payments for up to 6-months on all 2002 Chrysler Neon models with 0% purchase financing up to 36 months, See dealer ~
Feil Dents, FullFoce Orthodontics, LMU, for details. ‘* No payments for 90 days on selected vehicles, See dealer for datails. { Based on $1,500 - $3,000 factory ta dealer incentives deducted from MSRP. Actual savings will vary JAULNGIn AL
: depending on price negotiated. A Graduate Rebate applies as follows: $500 cash allowanee on leased vehicles, $750 cash allowance on Neon purchase: $1,000 cash allowance on . di
# Serving the Northivest for 10 years purchase af vehicles excluding Neon; offer applies to all vehicles excluding Dodge Vipar and Chrysler Prowler. Some conditions apply, Sea dealer for complete details and conditions, [GRADUG)| fRmieteurg
« Full Fete Orthodontie Cara + Warranty vatid for all new 2002 model yaar vehicles sold on or after July 29, 2002, to 7 years or 115,000km, whichaver comes first. Some conditions apply. Sea dealer for details. we Jeap

® Jeep is a registered trademark of DaimlerChrysler Corporation used under license by DaimlerChrysler Canada Inc.; a wholly owned subsidiary of DaimlerChrysler Corporation, upto 41000"

TERRACE

kA CHRYSLER

© [nviseatlgn - the invisable braces
«TA. Treatment

# Porcelain Crowns and Veneers

+ Tech Whitening [Bleaching]

* Latex Free Office

Dr. Peter. A. Okimi
200-4619 Park Avenue,
Terrace, B.C, V8G 1V5

(250) 635-7611

‘Did you know that o child should be seen for
theie fist onhodonte scroening belord oge 7#

4916 Hwy. 16 West, Terrace, B.C.
635-7187
1-800-313-7187

www.terraceautomall.com nizs9sg