Multinational metal and mining corporation Rio Tinto has today announced it would be reviewing the viability of the New Zealand Aluminium Smelter at Tiwai Point, near Bluff.
According to a Rio Tinto spokesperson, high energy costs and aluminium industry challenges have meant that the smelter, as an asset, would continue to be “unprofitable”.
According to Rio Tinto Aluminium chief executive Alf Barrios, many aluminium providers are reviewing their positions.
“The aluminium industry is currently facing significant headwinds with historically low prices due to an over-supplied market.”
Rio Tinto will work with “all stakeholders including the government, suppliers, communities, and employees in order to find a solution that will ensure a profitable future for this plant”.
The review, which is expected to be completed in the first quarter of 2020, will outline all options of NZAS’s future, including curtailment and closure.
Invercargill MP Sarah Dowie said the closure of Tiwai Point would be “devastating” for Southland, primarily as it delivers 1,000 jobs and supports many Southland families.
“National provided a 90 per cent rebate on the smelter’s Emissions Trading Scheme obligations because it is one of the only aluminium smelters in the world facing a carbon price. This Government has openly threatened to remove this rebate and threaten its economic viability.
“First Southlanders have endured the Government’s short-sighted tertiary education reforms, and now a valuable source of employment is struggling to continue as a result of their policies, it’s clear this Government is not looking out for Southlanders.”