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In April 2013, the Company made a final investment decision to relocate a second idle Chile facility to Geismar, Louisiana. The Company estimates total project costs, excluding capitalized interest, of $550 million with plant start-up expected in early 2016.
4. Investment in Atlas methanol facility:
a) The Company has a 63.1% equity interest in Atlas Methanol Company Unlimited (Atlas). Atlas owns a 1.8 million tonne per year methanol production facility in Trinidad. Effective January 1, 2013, the Company accounts for its interest in Atlas using the equity method (refer to note 11). Summarized financial information of Atlas (100% basis) is as follows:
Mar 31 Dec 31 Jan 1Summarized Financial Information as at 2013 2012 2012--------------------------------------------------------------------------------------------------------------------------------------------------------Cash and cash equivalents 10,781 28,883 14,685Other current assets 134,630 104,933 102,872Non-current assets 398,494 407,362 411,465Current liabilities (58,218) (65,005) (29,473)Non-current liabilities, including current maturities (212,054) (204,395) (227,430)----------------------------------------------------------------------------Net assets at 100% $ 273,633 $ 271,778 $ 272,119----------------------------------------------------------------------------Net assests at 63.1% $ 172,662 $ 171,492 $ 171,707Long-term receivable from Atlas 13,328 13,173 -----------------------------------------------------------------------------Investment in associate $ 185,990 $ 184,665 $ 171,707---------------------------------------------------------------------------- Three Months Ended ------------------------ Mar 31 Mar 31Summarized Financial Information 2013 2012--------------------------------------------------------------------------------------------------------------------------------------------------------Revenue $ 85,366 $ 26,884Cost of sales and depreciation and amortization (79,298) (36,122)----------------------------------------------------------------------------Operating income (loss) 6,068 (9,238)Finance costs, finance income and other expenses (3,421) (4,214)Income tax (expense) recovery (609) 1,839----------------------------------------------------------------------------Net earnings (loss) at 100% $ 2,038 $ (11,613)----------------------------------------------------------------------------Earnings (loss) of associate at 63.1% $ 1,286 $ (7,328)----------------------------------------------------------------------------
b) Contingent liability:
The Board of Inland Revenue of Trinidad and Tobago has issued assessments against Atlas in respect of the 2005 and 2006 financial years. All subsequent tax years remain open to assessment. The assessments relate to the pricing arrangements of certain long-term fixed price sales contracts that extend to 2014 and 2019 related to methanol produced by Atlas. The impact of the amounts in dispute for the 2005 and 2006 financial years is not significant. Atlas has partial relief from corporation income tax until 2014.
