NZAS reaches deal with Meridian to extend operations to 2024
January 13 2021 - 2:00PM
Business Wire
Rio Tinto has reached an agreement on a new electricity
agreement with Meridian Energy that allows New Zealand’s Aluminium
Smelter (NZAS) to continue operating the Tiwai Point aluminium
smelter until December 31, 2024. The extension provides certainty
to employees, the local community and customers while providing
more time for all stakeholders to plan for the future.
While discussions with the New Zealand government are
progressing in relation to their commitment to address the
smelter’s high transmission costs, a new agreement has been reached
with Meridian Energy in relation to power prices, making the
smelter economically viable and competitive over the next four
years.
The extension also provides time for detailed closure studies to
be completed and for NZAS to support the government and Southland
community in planning for the future. Plans for eventual closure of
the Tiwai Point smelter will include extensive stakeholder
consultation, including within the Southland community and reflect
the company’s robust closure and remediation standards.
Rio Tinto Aluminium chief executive Alf Barrios said “We are
pleased to have reached an agreement with Meridian Energy that will
enable the Tiwai Point smelter to continue producing some of the
lowest carbon aluminium in the world. This agreement improves Tiwai
Point’s competitive position and secures the extension of operation
to December 2024. It also provides Rio Tinto, the New Zealand
government, Meridian, and the Southland community more time to plan
for the future and importantly gives our hard-working team at Tiwai
and our customers the certainty they deserve.”
In July 2020, Rio Tinto announced the conclusion of a strategic
review of the smelter and a decision to wind down operations by
August 2021 due to high energy and transmission costs.
NZAS is a joint venture between Rio Tinto (79.36%) and Sumitomo
Chemical Company Limited (20.64%). It employs around 1000 people
directly and creates a further 1600 indirect jobs in Southland.
This announcement is authorised for release to the market by Rio
Tinto’s Group Company Secretary.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210113005815/en/
media.enquiries@riotinto.com riotinto.com
Follow @RioTinto on Twitter
Media Relations, New Zealand Jen Nolan +64 21 381 981
Media Relations, United Kingdom Illtud Harri M +44 7920
503 600
David Outhwaite T +44 20 7781 1623 M +44 7787 597 493
Media Relations, Americas Matthew Klar T +1 514 608
4429
Media Relations, Asia Grant Donald T +65 6679 9290 M +65
9722 6028
Media Relations, Australia Jonathan Rose T +61 3 9283
3088 M +61 447 028 913
Matt Chambers T +61 3 9283 3087 M +61 433 525 739
Jesse Riseborough T +61 8 6211 6013 M +61 436 653 412
Investor Relations, United Kingdom Menno Sanderse T: +44
20 7781 1517 M: +44 7825 195 178
David Ovington T +44 20 7781 2051 M +44 7920 010 978
Clare Peever M: +44 7788 967 877
Investor Relations, Australia Natalie Worley T +61 3 9283
3063 M +61 409 210 462
Amar Jambaa T +61 3 9283 3627 M +61 472 865 948
Rio Tinto plc 6 St James’s Square London SW1Y 4AD United
Kingdom T +44 20 7781 2000 Registered in England No. 719885
Rio Tinto Limited Level 7, 360 Collins Street Melbourne
3000 Australia T +61 3 9283 3333 Registered in Australia ABN 96 004
458 404=
Category: general
Rio Tinto (ASX:RIO)
Historical Stock Chart
From Mar 2024 to Apr 2024
Rio Tinto (ASX:RIO)
Historical Stock Chart
From Apr 2023 to Apr 2024