New Zealand Government Promises Support for Region to be Hit by Smelter Closure
09 July 2020 - 9:42AM
Dow Jones News
WELLINGTON, New Zealand--The New Zealand government has promised
economic support for the Southland region after Rio Tinto Ltd. said
it will close the country's only aluminum smelter by August next
year.
Rio Tinto's decision was disappointing but there was a "degree
of inevitability" to it, Finance Minister Grant Robertson said
Thursday. The smelter supports about 2,600 jobs.
New Zealand had subsidized the smelter since it opened in 1971
and Rio Tinto had decided it couldn't continue operating it without
additional support, Mr. Robertson said.
"This day has unfortunately been on the cards for some time
now," he said. "The government will work with the local community
to support economic development in the region to help offset this
loss."
Energy Minister Megan Woods said the closure of the smelter,
which uses 13% of power generated in New Zealand, will relieve some
pressure to build new generation.
The electricity supply freed up by the closure will also lower
prices for consumers, she said.
Write to Stephen Wright at stephen.wright@wsj.com
(END) Dow Jones Newswires
July 08, 2020 19:27 ET (23:27 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
Rio Tinto (LSE:RIO)
Historical Stock Chart
From Apr 2024 to May 2024
Rio Tinto (LSE:RIO)
Historical Stock Chart
From May 2023 to May 2024