Rio Tinto's New Zealand Aluminum Smelter Looks to Operate Beyond Planned 2024 Closure
28 July 2022 - 08:08AM
Dow Jones News
By Stephen Wright
A Rio Tinto aluminum smelter that's the largest consumer of
electricity in New Zealand said it is exploring options for
operating beyond a planned 2024 closure.
The smelter, which makes aluminum used in mobile phones and
airplanes, on Thursday said it is "exploring potential pathways
with electricity generators for a future beyond 2024."
Meridian Energy Ltd., which powers the smelter from the
Manapouri hydro dam, said it expects talks with the smelter will
include contract negotiations. The smelter, located at the bottom
of New Zealand's South Island, uses about 13% of the country's
electricity supply and accounts for about half a percent of world
aluminum production.
Global mining company Rio Tinto had planned to close New Zealand
Aluminum Smelter in August 2021, but secured cheaper power prices,
which extended its operation to 2024.
The smelter's financial viability has improved following a
recent surge in world aluminum prices. Its use of hydro electricity
also creates the potential to market its output as less damaging to
the environment than other smelters.
Rio has about a 79% stake in the smelter and Japan's Sumitomo
Chemical Co. owns 21%.
Write to Stephen Wright at stephen.wright@wsj.com
(END) Dow Jones Newswires
July 27, 2022 17:53 ET (21:53 GMT)
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