The Maritime Standard Tanker Conference 2020Port of StocktonViganThe Maritime Standard AwardsCleveland Cascades LtdCimbria
  • TOC Events
  • Cimbria
  • Bühler GmbH
  • Sailors Society
  • The Maritime Standard Awards
  • Vigan

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

China to increase Indonesian coal imports

(Posted on 30/11/20)

The Indonesian Coal Mining Association (APBI-ICMA) and CCTDA (China Coal Transportation and Distribution... Read more


World steel production up

(Posted on 30/11/20)

World crude steel production for the 64 countries reporting to the World Steel Association (worldsteel... Read more


EUROFER welcomes Turkish steel registration

(Posted on 23/11/20)

The European Steel Association (EUROFER) has welcomed the start of the registration of Turkish hot-rolled... Read more


Entering a new milling era

(Posted on 23/11/20)

Bühler is heralding a new age in milling technology with the launch of Arrius, a fully integrated... Read more


NMA congratulates Biden and Harris

(Posted on 12/11/20)

The USA’s National Mining Association (NMA) President and CEO Rich Nolan has issued a forward-... Read more


thyssenkrupp expands network for mining industry

(Posted on 12/11/20)

In September 2020, the new manufacturing and service centre in Ankara, Turkey, startedits operations... Read more


Fertilizers Europe welcomes Commission’s Russia report

(Posted on 06/11/20)

European Fertilizer industry welcomes the Commission report providing fact-based evidence on significant... Read more


Rusal instals crude aluminium cleaning system

(Posted on 06/11/20)

Rusal, a leading global aluminium producer, completes the installation of a modern automated system... Read more


U.S. opposes Okonjo-Iweala as next WTO chief

(Posted on 02/11/20)

The United States this week signalled its opposition to Nigeria’s Ngozi Okonjo-Iweala to become... Read more


Rusal announces Q3 results

(Posted on 02/11/20)

Rusal’s Aluminium production] in 3Q20 totaled 939 thousand tonnes (+1.3% quarter-on-quarter (&... Read more


Sailors SocietyTOC EventsTBA GroupPort of Vancouver USATelestackThe Wolfson Centre for Bulk Solids Handling Technology
  • The Wolfson Centre for Bulk Solids Handling Technology
  • Cleveland Cascades Ltd

Subscribe to our newsletter

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