Rio Tinto¡¯s Tiwai Point Aluminium smelter in NZ can stay open: Contact Energy¡¯s CEO send a positive note

Dennis Barnes, CEO, Contact Energy NZ is optimistic that Rio Tinto, the major-owner of Tiwai Point Aluminium smelter can keep it open, but with an upgrade of the power grid - for when the facility does eventually close - will happen sooner rather than later.

Rio Tinto's review of the ageing smelter - which uses about 12% of New Zealand's power output - is due by the end of March’20.

Contact Energy, which has large-scale hydro generation capacity in the south of the South Island, said Rio Tinto's review of Tiwai remained "firmly on the radar".

A spokesperson of Rio Tinto said, "A disorderly exit of the smelter would be a poor outcome for New Zealand and we are actively engaged in negotiations for revised terms for electricity supply to Tiwai.”

The contract negotiations are between Meridian and the smelter. Contact Energy provides contract support to Meridian.

Dennis Barnes said: "The smelter is one asset in a massive multinational, so we are in the lap of the gods in terms of the decision-making and their long-term ambitions.”

"But given its low carbon nature, the smelter's cross-shareholding with Sumitomo Chemical (which owns 20 per cent), and the type of technology they use, it is set it up well for the future of high purity production.”

Copyright and Exemption Declaration :¢ÙAll articles, pictures and videos that are marked with "China Aluminum Network" on this website are copyright and belong to China Aluminium Network (www.wokk1.com). When transshipment, any media, website or individual must list the source from "China Aluminium Network (www.wokk1.com)". We seek legal actions against anyone that disobey this. ¢ÚArticles that marked as copy from others are for transferring more information to readers, do not represent or endorse their opinions or accuracy and reliability. When other media, website or individuals copy from our website, must keep the source. Anyone that changes the articles' sources will hold the responsibilities for copyright and law problems. We also seek legal actions against anyone that disobey this. ¢ÛIf any articles copied by our website concern the copyright and other problems, please contact us within one week.