The way forward for the smelter was unclear after Rio stated in early 2021 it could be closed late this 12 months. The corporate had questioned the viability of the enterprise given excessive vitality prices and the outlook for the aluminum trade.
The brand new electrical energy preparations embrace 20-year demand response agreements underneath which NZAS could also be requested to cut back electrical energy consumption by as much as a complete of 185MW.
“We’re happy the long-term way forward for the Tiwai Level smelter has been secured with these agreements, Rio Tinto Aluminium chief government Jérôme Pécresse stated within the assertion.
“They provide us confidence that our New Zealand workforce and belongings can proceed competitively producing the excessive purity, low-carbon aluminum wanted for the worldwide vitality transition.”
The Tiwai Level aluminum smelter will proceed competitively producing high-purity, low-carbon metallic, backed by a diversified mixture of renewable electrical energy from New Zealand’s South Island, Rio stated.
In a separate transaction, Rio has entered into an settlement to accumulate Sumitomo Chemical Firm’s (SCC) 20.64% curiosity in NZAS for an undisclosed worth. Upon completion, Rio would turn into sole proprietor of NZAS.
It has additionally agreed to accumulate from SCC a 2.46% curiosity in Boyne Smelters Ltd (BSL), which owns and operates the Boyne Island aluminum smelter in Gladstone, Australia. This could deliver Rio’s stake in BSL to 61.85%. The worth was not disclosed.
