New Zealand Aluminium Smelters, controlled by the mining giant Rio Tinto, has declared to restart its fourth potline in next six months to strengthen production capacity at Tiwai Point smelter by about 9.2 per cent and create 32 new jobs in Scotland.
The company takes this decision on securing a power contract for 50 megawatts per hour until December 2022 and estimates to boost its production by 85 tonnes a day, which amounts to 31,000 tonnes a year, up by 9.2 per cent from the existing production of 337,000 tonnes.
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NZAS chief executive Gretta Stephens said, "It is never good to have a cold potline at a smelter as it represents a capital investment that isn't contributing to our economy and our community." Adding to it, he also said, “NZAS is well-placed to offer metal that is increasingly sought after in a low carbon global economy."
The smelter had stopped operating the potline in April 2012, when global aluminium prices were in trough and Rio Tinto considered selling its Pacific Aluminium portfolio. Henceforth, the plant halted planned spending capital followed by downsizing its workforce, and also played hardball renegotiating contracts with Meridian energy.
Today, Meridian energy reports that the contract sets an agreed price for the annual 435 gigawatt per hour, supported by contracts with Contact Energy, Genesis Energy and Mercury NZ, which sits separately from the main supply deal providing 572 megawatt per hour to 2030.
In this regard, Meridian chief executive Neal Barclay said, "The smelter provides one of the world's purest sources of aluminium and we believe this increase in production reflects a real confidence and commitment to the smelter operation and to Southland." He also said, "This arrangement further demonstrates that New Zealand remains a good place to invest and that our electricity markets provide more certainty than those of many other countries - this is a real source of competitive advantage for New Zealand internationally."
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