Cleanup questions about Glencore's other smelter

All the recent public discussion about a Superfund-type cleanup at the closed Columbia Falls Aluminum Co. plant and whether the smelter’s Swiss owner will pay for the cleanup raises an important question — what was Glencore’s role in the cleanup at the aluminum smelter it once owned in Vancouver, Wash.?

The answer, it turns out, is not so clear.

Alcoa built the smelter on the Columbia River in 1940 and operated it for 45 years before selling it to Vanalco. Alcoa retained ownership of the alumina unloading facility and dock.

Vanalco made the mistake of turning to the open market for power just before the West Coast energy crisis shut down the entire Pacific Northwest aluminum industry, and the company ended up filing for bankruptcy in 2001.

Glencore purchased the World War II-era plant in 2002 for $25.2 million and renamed it Evergreen Aluminum, but the Swiss-based commodities trader never restarted it. One power analyst guessed that the price was so low, Glencore could afford to hold the plant in reserve in case the aluminum industry picked up again.

Cleanup at the plant first began in 1986 when the Washington Department of Ecology ordered an investigation of spent potliner buried at the plant. Spent potliner is a source of cyanide and other contaminants in groundwater at most aluminum smelters, including CFAC. An underground plume of cyanide discovered heading toward the Columbia River in 1990 was cleaned up by 1996.

Working under a DOE order from 1988 through 2011, Alcoa or Glencore cleaned up PCB contamination, spent potliner, a settling pond and a waste oil dump. Alcoa is credited with spending $34 million cleaning up PCBs over several years.

During demolition of the plant, about 62,500 tons of contaminated soil and industrial waste were hauled away. Complete demolition and site cleanup was completed in March 2010, with supplemental work in 2011 to address contaminated groundwater beneath a landfill.

In 2005, the Port of Vancouver, a governmental entity, showed interest in acquiring the 100-acre Alcoa property, assessed at $4.5 million after cleanup, and the 111-acre Glencore property, assessed at $5.5 million after cleanup. In 2009, the Port paid $49 million for the entire site, which is now known as Terminal 5.

Established in 1912, the Port has grown over the years to five terminals and 13 berths established at the terminus of the Columbia River’s 43-foot deep shipping channel. With more than 1.2 million square feet of waterfront space and two large harbor cranes, the site is connected to two major railroad lines and two interstate highways.

Terminal 5 is currently being used to store huge turbine blades for wind generators and a bulk-handling facility operated by mining giant BHP Billiton. Potash mined by BHP Billiton in Saskatchewan is shipped to the port by rail and transferred to ships bound for Asia. The potash is used to make fertilizer.

When asked about Glencore’s role in the cleanup at the former aluminum plant, Guy Barrett, the new DOE site manager, said it was unclear, and in any event it might be confidential business information. To be helpful, he forwarded the question to “one of the responsible parties” and received an anonymous response.

“Who actually pays is typically based on contractual language from the various sales and transactions that took place over time,” the person said. “And those terms are considered business confidential and covered by confidentiality clauses in the contracts. In addition, some historic insurance coverage can be accessed. Lastly, some plants date back to World War II and were operated by and for the government. In some of those cases, the U.S. government has also paid towards the cleanup.”

CFAC has seen four owners since it began operating as the Anaconda Aluminum Co. in 1955 — The Anaconda Co., Atlantic Richfield Co., Brack Duker and Jerome Broussard, and now Glencore. The terms of the contracts between these companies — and with the federal government — may never be made public.