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“Aluminum smelters create some of the most energy-intensive jobs in the world. BHP Billiton suggests that the new smelter would create 1,200 permanent jobs and require 1,600 sub-contractors, representing an astounding 4,286 MWh of consumed electricity per job/sub-contract. While these jobs and local sub-contracts are important, they come at the opportunity cost of similar investments which could create more jobs and local development. Attracting a variety of manufacturing and processing industries to the region could create far more jobs, spurring the local economy while consuming the same amount of, or even less, electricity.
Aluminum smelters also pay some of the world’s lowest electricity tariffs. Other electricity consumers, especially Congolese households, are at risk of paying higher power tariffs to offset the disproportionately low tariffs BHP Billiton is expected to negotiate.
In order to justify low power tariffs and energy-intensive job creation in a country with such low energy access rates and high unemployment, other economic and financial benefits are expected to offset the opportunity cost. However, investment contracts commonly reduce tax burdens and royalty rates paid to the state. Indirect economic benefits, such as indirect job creation, can also be misleading as they would likely accompany investments in other new industries as well.”
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