Rio Tinto is “actively considering” restarting the dormant fourth potline at the Tiwai Point aluminium smelter near Bluff. With global aluminium prices surging past USD 3,000 per tonne, hovering near historical highs at around USD 3,148 per tonne, up 24 per cent since the end of March 2025, the height of economic urgency for the smelter reopening has elevated. 

Explore- Most accurate data to drive business decisions with Global ALuminium Industry Outlook 2026 across the value chain

The early phase of the COVID-19 pandemic in 2020 led to a suspension of operations at potline 4. In 2024, the company sought expressions of interest from power suppliers capable of supporting a potential restart.

According to a Rio Tinto spokesperson, though no final decision has been made yet, discussions with potential electricity providers are advancing steadily. “New Zealand Aluminium Smelter has been assessing the commercial options presented, alongside market conditions and the broader needs of New Zealand’s energy market,” he stated.

Regarding job and production boost, he added, “Line 4 would add more than 20 jobs and 30,000 tonnes of aluminium production, boosting export earnings and GDP, which would be positive for New Zealand.”

Energy considerations for potline 4

Once the smelter is fully operational, potline 4, being the smallest of the smelter’s four lines, would account for 9 per cent (approx.) of the total output. However, its restart would require around 50 megawatts of electricity, equivalent to around 1 per cent of the average national demand of New Zealand.

The majority of the smelter’s power is supplied by Meridian Energy, which indicated that despite the efforts of policymakers to avoid repetition of supply crunch, the electricity market, as noted by Meridian Chief Executive Mike Roan, could shift from “under-supply to over-supply very quickly.”

He continued, “If the risk of oversupply manifests, then what we would look to do is to bring new consumption to the economy.” Roan clarified that this situation is being focused on “in parallel with investing in new assets on the supply side.”

The smelter restart discussions therefore stand at the intersection of surging aluminium prices and evolving dynamics within the power market of New Zealand.

Don't miss out- Buyers are looking for your products on our B2B platform

Note: The image has been generated by AI for referential purposes only.