Business group laughing all the way to bank over smelter deal, Lib Dems claim

Get the free Morning Headlines email for news from our reporters across the world Sign up to our free Morning Headlines email Sign up to our free Morning Headlines email SIGN UP I would like to be emailed about offers, events and updates from The Independent. The party’s economy spokesman, Willie Rennie, said that GFG Alliance – a collection of businesses in energy, steel and trading centred around businessman Sanjeev Gupta – paid £330 million in 2016 for the aluminium smelter and its associated works in Fort William The smelter and its assets, including land and a hydro-electric plant providing the smelter’s power, are currently valued at £438 million – a gain of £108 million. GFG Alliance is laughing all the way to the bank with the Lochaber smelter deal with the SNP Government Willie Rennie Scottish Lib Dems Mr Rennie said: “GFG Alliance is laughing all the way to the bank with the Lochaber smelter deal with the SNP Government “GFG bought Lochaber for £330 million but the assets have now been valued at £438 million, with very little investment or effort from the company. “That’s quite a return on their investment, which was backed by a £568 million SNP Government guarantee.” Details from a Freedom of Information request show that in return for the guarantee, Liberty Aluminium Lochaber Ltd, part of GFG Alliance, pays the Scottish Government a commercial fee. The FOI says: “Since 2016, Liberty Aluminium has fulfilled all its power purchase and guarantee fee obligations, and there has been no call – and therefore no resulting public expenditure – against the Scottish Government guarantee.” The FOI says that Liberty Aluminium Lochaber Ltd annually pays the Scottish Government between £14 million and £28 million for the life of the guarantee.