Global mining giant Rio Tinto could shut down its operations in the Highlands, the Press and Journal has learned.
About 170 staff at the multinational firm’s aluminium smelter and hydro electric plant in Fort William and Kinlochleven were told the news this morning.
A Rio Tinto spokesman confirmed to the P&J that the firm was conducting a “strategic review” of its operations at the Alcan site in Lochaber, and worldwide.
“It’s a review of everything in light of current market prospects and economic environment,” the spokesman said.
The move is part of a global review, he added.
Rio Tinto is one of the biggest private employers in the Highlands.
The news emerged the day after fish farm giant Marine Harvest announced 100 job losses in the Highlands.
Brian King, General Manager at Rio Tinto, briefed staff this morning.
In a memo to local politicians, he said: “Today we have advised our employees in the Lochaber business that in light of the current market prospects and economic environment, and as part of our on-going review of our businesses, Rio Tinto is launching a strategic review of its assets in Lochaber.
“This strategic review is the start of a process, during which we will be talking to our employees, key stakeholders and partners.
“The review will include the aluminium smelter, the hydro-electric power stations located in Fort William and in Kinlochleven as well as estate lands located in the Scottish Highlands. I want to emphasise that all options will be considered.
“Given the broad diversity of assets at Lochaber, the review will consider various scenarios to ensure that all options are fully assessed, in keeping with Rio Tinto’s standard practice in conducting such reviews.
“We recognise that this is a difficult time for our employees and we will keep our staff informed as we move forward. In the meantime, it is paramount that we remain focused on keeping our employees safe and that we keep delivering the same quality product.”
Fort William Labour councillor Brian Murphy said: “I’m very concerned, given what’s happening in the economy in general at present.
“With what looks like the start of another economic decision, I’m very concerned.
“This is a business that’s been there since the late 1920s. Its strength has always been that it generates its own electricity. That’s always been the factor which has saved it in the past.
“We’ve seen plants like Invergordon and Lynemouth in the northeast of England come and go but Lochaber has managed to survive and it’s basically because of its own hydro-electric power station.
“As far as I’m aware it’s still a profitable business.
“I’ve visited the plant several times over the past few years when they refurbished the power station and have certainly always been quite upbeat about the plans and its future. I hope that will continue to be the case.”
He added that the fallout from job losses would have major repercussions for the wider area.
“There are all the contractors and suppliers, there’s road and rail transport – and this is one of the last aluminium smelters in the UK.”