Van AalstTelestackSailors SocietyGeneva DryTBA GroupPort of South Louisiana
  • Port of South Louisiana
  • Port of Stockton
  • TMS Awards 2023
  • Geneva Dry
  • Vigan
  • TBA Group

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

SSAB postpones commissioning of new steel mill in Luleå by 12 months

(Posted on 20/06/25)

SSAB has commenced preparatory work to build a new, state-of-the-art steel mill in Luleå, Sweden... Read more


Anglo American streamlines leadership team to reflect portfolio progress

(Posted on 20/06/25)

Anglo American plc has streamlined its executive leadership team to reflect substantial progress with... Read more


NeoSmelt welcomes Government support for steel decarbonisation project

(Posted on 20/06/25)

NeoSmelt, a consortium of leading resources, energy and manufacturing companies working together on... Read more


Telestack announces new iron ore project

(Posted on 16/06/25)

Northern Ireland based Telestack have announced that they have been awarded a contract for the supply... Read more


Bühler opens grain puffing technology centre

(Posted on 15/06/25)

Bühler has opened its new Puffing Application Center in Uzwil, Switzerland, providing food... Read more


Ore sorting demonstration project at Havre-Saint-Pierre mine launched

(Posted on 15/06/25)

Rio Tinto is investing CA$7.6 million in an industrial demonstration project to assess the integration... Read more


Bühler sets new global standard with state-of-the-art Milling Academy

(Posted on 15/06/25)

Bühler has opened a new, state-of-the-art Milling Academy – a 1,800-square-meter training... Read more


Anglo American completes demerger of Valterra Platinum

(Posted on 06/06/25)

Anglo American plc has announced that it has completed the demerger of c.51% of the Company’s... Read more


Western Range iron ore mine in Pilbara opened with Yinhawangka owners

(Posted on 06/06/25)

Rio Tinto has officially opened its newest iron ore mine, Western Range, with Western Australian Premier... Read more


Heidelberg presents Strategy 2030 to accelerate profitable growth

(Posted on 02/06/25)

Heidelberg Materials has presented its “Strategy 2030: Making a Material Difference” at... Read more


TMS Awards 2023Port of StocktonViganBühler GmbHCimbria
  • Telestack
  • Bühler GmbH
  • Sailors Society
  • Van Aalst

Subscribe to our newsletter

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