Deputy Speaker, when, on 18 November 2004, Alcan announced a feasibility study for a new aluminium smelter in Coega, in partnership with the government and the IDC - the Industrial Development Corporation - the people of the Eastern Cape were excited about the economic prospects. Two years later, when it signed a 25-year power-supply contract with Eskom, people were even more excited as this was now a committed project that would be worth billions.
On 23 May 2007, in good faith, Alcan went as far as selecting a CEO to oversee the R20-billion project. But then there was a bombshell: Early in October, the company terminated its agreement with Eskom, because it could no longer guarantee power supply in the future. What the people of the Eastern Cape would like to know is: What happened to the task team that was set up to smooth out the problem of the power supply? This withdrawal by Alcan - a blue-chip company - is indeed a massive blow to the viability of Coega. It is also a bitter indictment of the government's handling of the whole energy issue in our country. The Alcan project, which was meant to be the anchor for foreign direct investment, will send a negative signal to other companies.
Billions were already committed for this project. Government must, therefore, do an immediate cost-benefit analysis of the smelter project and advise Parliament as to what the best course of action is on this matter, going forward. We need a clear and candid response from the government, seeing that the situation in Eskom is becoming murkier and murkier. I thank you.
Order! Thank you, hon member. Do you have a point of order, hon Minister?
No, I just wanted to know from the hon member whether it is the people of the Eastern Cape who want a smelter or could the elephant consortium ... [Interjections.] [Laughter.] ... be having some interest in the aluminium sector.
The ANC - I am sure, hon Ngonyama - will answer you outside.