ViganPort of South LouisianaVan AalstThe Wolfson Centre for Bulk Solids Handling Technology TelestackSailors Society
  • Vigan
  • Port of South Louisiana
  • Van Aalst
  • The Wolfson Centre for Bulk Solids Handling Technology
  • Telestack
  • Port of Stockton

NZAS to wind-down operations

NZAS to wind-down operations

(Posted on 10/07/20)

Rio Tinto will start planning for the wind-down of operations and the eventual closure of New Zealand Aluminium Smelters (NZAS) following the conclusion of its strategic review which has shown the business is no longer viable given high energy costs and a challenging outlook for the Aluminum industry.

As a result, NZAS has given Meridian Energy notice to terminate the power contract, which will end in August 2021, when the wind-down of operations is expected to complete.

The strategic review concluded that the smelter, which has made Rio Tinto an underlying loss of NZ$46m in 2019, is not economically viable due to energy costs that are some of the highest in the industry globally, coupled with a challenging short to medium term aluminum outlook. Extensive discussions with a wide range of interested parties have failed to secure a power contract that will enable the operation to become both competitive and profitable.

During the next 14 months, NZAS and Rio Tinto will work closely with partners as detailed planning is undertaken to wind-down operations, and eventually close the smelter.

Rio Tinto Aluminium chief executive Alf Barrios said “We recognise the decision to wind-down operations at NZAS will have a significant impact on employees, the community and our customers.

“It is not a decision we have made lightly and without significant careful consideration. It is very unfortunate we could not find a solution with our partners to secure a power price reduction aimed at making NZAS a financially viable business. We will therefore terminate the power contract and move to close the operation.

“We are committed to working with our partners as we progress through detailed planning towards closure and we will do all we can together with the government to find ways to support the Southland community.”

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.

Latest News

Cargill acquires Owensboro Grain Company

(Posted on 05/12/22)

Cargill and Owensboro Grain Company, a fifth-generation family-owned soybean processing facility and... Read more


Rio Tinto to strengthen, decarbonise and grow

(Posted on 01/12/22)

Rio Tinto is providing an update at its Investor Seminar on progress against its long-term strategy... Read more


BioIron proves successful for low-carbon iron-making

(Posted on 29/11/22)

Rio Tinto has proven the effectiveness of its low-carbon iron-making process using ores from its mines... Read more


Rio Tinto, BHP and Fortescue to create safer workplaces

(Posted on 19/11/22)

Rio Tinto, BHP and Fortescue are launching an innovative pilot programme aimed at helping to eliminate... Read more


AJ Steel agreement with KEZAD to expand in Abu Dhabi

(Posted on 19/11/22)

Leading UAE steel pipe manufacturer and exporter, AJ Steel, has signed an agreement with the integrated... Read more


EU fertilizer industry calls for more comprehensive long-term strategy

(Posted on 13/11/22)

Fertilizers Europe has welcomed the recognition of the European Commission that urgent and targeted... Read more


NGFA urge US Congress to prevent rail shutdown

(Posted on 09/11/22)

The National Grain and Feed Association (NGFA) in the USA and 192 other members of the Agricultural... Read more


BHP and Rio Tinto to collaborate on new tailings technology

(Posted on 02/11/22)

Global miners BHP and Rio Tinto have formed a partnership agreement to accelerate the development of... Read more


Trafigura signs German guaranteed US$800m loan agreement

(Posted on 26/10/22)

Trafigura, a market leader in the global commodities industry, has entered into a USD800 million five... Read more


Blastr and Cargill Metals MOU for supply of green steel

(Posted on 26/10/22)

Cargill’s metals business and Blastr Green Steel AS, a developer of decarbonized steel supply,... Read more


CimbriaPort of StocktonTBA GroupCleveland Cascades LtdBühler GmbHTOC Events
  • Sailors Society
  • Cimbria
  • Cleveland Cascades Ltd

Subscribe to our newsletter

Keep up to date with the latest global news in bulk cargo handling and shipping