Sarawak - Articles Comalco's Power Play in Manapouri, New Zealand 1960 New Zealand Labour government and Comalco signs contract for Comalco to build both an aluminium smelter in Tiwai Point and a power station in Manapouri. Comalco receives exclusive rights to the waters of both Lake Manapouri and Te Anau for 99 years. Comalco plans to build dams that would raise both lakes - 84 feet higher for Lake Manapouri. Save Manapouri Campaign (SMC) is born, marking the beginning of the modern NZ environmental movement. SMC gathers 264,906 signatures, representing about 10% of the NZ population, on a petition opposing the raising of the lakes. 1963 Comalco claims it cannot afford to build the power station. NZ government takes over and agrees to build the 4000 gigawatt-hour Manapouri power plant. Electricity generated by the plant sold to Comalco at basement prices, with no provision for inflation: 13 times less than the rate paid by NZ householders and one twentieth the rate charged to other industries and farmers. Comalco builds the Tiwai Point almunium smelter, the eighth largest aluminium smelter in the world and the largest single electricity user in NZ. 1970 Comalco issues shares to influential New Zealanders at a cheap rate before offering them to the public. These include prominent journalists, politicians, judges and newspaper executives. 1974 Drought cases a severe drop in Lake Manapouri's level. Comalco takes electricity at the national grid at same low prices. 1977 The government proposes a 650% increase of the price of the electricity sold to Comalco. Comalco contacts its parent companies in Japan, the UK and the United States and asks them to persuade the US and UK governments to "take action" against the NZ government. Rate increased by 350% and length of contract cut to 30 years. 1986 The government tries to increase Comalco's rates from 1.5 cents to 3.5 cents a unit. Comalco attempts to pressure top government officials, including Minister of Energy. Comalco also unsuccessfully takes the government to court. Labour government begins plans to sell the Manapouri plant. Although estimated to be worth NZ$3 billion, Comalco only offers a few hundred million. 1987 A researcher finds out that the Comalco smelter has frequently been paying absolutely nothing in tax. The NZ Electricity Department is corporatised and becomes Electricorp. "With corporatisation, electricity consumers will now have to meet the full cost of running the electricity system. Under the existing agreements, without any explicit Government subsidy, all other electricity consumers will be subsidising the smelter. Comalco is benefitting by [NZ] $1-1.5 million per week as a result of the present agreements." - Electricorp CEO. 1989 Comalco launches a lavish self-promotion campaign. NZ people do not buy it. 1990 The Labour government is defeated. Plans to sell the power plant to Comalco is halted. New government begins to review the plans. 1991 SMC is revived to oppose the selling of the Manapouri power station, which would revive Comalco's plans to raise the two lakes. The campaign is successful. The government announces that Manapouri will not be sold to Comalco. Electricorp to resume negotiations with Comalco with regard to price of power supply. 1993 Comalco threatens not to upgrade the aluminium smelter in NZ and instead build a new facility in Chile, so that Electricorp is compelled to be lenient in the power supply negotiations. Adapted from Multinational Monitor, June 1992