The Wolfson Centre for Bulk Solids Handling Technology TOC EventsMultimodal 2022Van AalstViganCimbria
  • The Wolfson Centre for Bulk Solids Handling Technology
  • Sailors Society
  • Bühler GmbH
  • Port of South Louisiana
  • Multimodal 2022
  • Van Aalst

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

Record profits as Glencore plan buyback and special dividend

(Posted on 05/08/22)

A first half year profit of almost $19bn has been announced by Glencore, partly driven by the company... Read more


Bühler and Al-Hazaa open cutting-edge flour mill in port of Aqaba, Jordan

(Posted on 29/07/22)

Swiss technology group Bühler and Jordanian Al-Hazaa Investment Group have celebrated the opening... Read more


Solar panels to reduce emissions at BHP Nickel West

(Posted on 25/07/22)

The first solar panels have started being installed this week at BHP’s massive solar farm at Leinster... Read more


BHP to receive world’s first carbon neutral conveyor belt

(Posted on 18/07/22)

China’s Wuxi Boton has announced the world's first carbon neutral conveyor belts for delivery... Read more


Ecobat announces sale of Stolberg

(Posted on 18/07/22)

Ecobat, the global leader in battery recycling, and Trafigura, a leading global supplier of commodities... Read more


CONVEY’22 to feature regulatory compliance, grain safety and ops training

(Posted on 01/07/22)

The National Grain and Feed Association in the USA (NGFA) is partnering with the Grain Elevator and... Read more


Landmark guide supports First Nations community engagement

(Posted on 26/06/22)

A new guide to support industry and organisations to engage with First Nations communities across Australia... Read more


First ore delivered at Rio Tinto Gudai-Darri mine in the Pilbara

(Posted on 20/06/22)

Rio Tinto has delivered first ore from the Gudai-Darri iron ore mine as the company brings online its... Read more


British Steel pressing ahead with £26 million investment

(Posted on 20/06/22)

British Steel has been given planning approval for a £26 million upgrade to its Special Profiles... Read more


Trafigura strong in testing times

(Posted on 12/06/22)

Trafigura Group Pte. Ltd, a market leader in the global commodities industry, released its half year... Read more


Port of StocktonTBA GroupTelestackPort of South LouisianaBühler GmbHSailors Society
  • Port of Stockton
  • Cleveland Cascades Ltd

Subscribe to our newsletter

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