Rio Tinto’s Tiwai Aluminium smelter assures over clean-up after Govt. suspended negotiations

Stewart Hamilton, the Chief Executive officer of the Tiwai Point aluminium smelter has delivered assurance that the group will shut down the smelter safely and responsibly after the New Zealand Government suspended negotiations over its future clean-up.

NZAS chief said: “The smelter recognised its impact and responsibilities wouldn’t end when its operations ceased.”

“We respect our local community and will share further information on closure studies as soon as possible,” he added.

Global mining and metal giant, Rio Tinto, the majority stakeholder of the smelter in January decided to smelter operative at least until the end of 2024 after Meridian energy agreed to reduce the price it charged the smelter for power until then to what Meridian described as an "unsustainable" price, believed to be about 3.5 cents a kilowatt-hour.

The prediction also said that Rio Tinto assessed at the time it committed to keeping the smelter open until 2024 that it also had good reason to believe the smelter would receive additional assistance from the Government, most probably in the form of a reduction in its Transpower electricity transmission charges.

However, Rio Tinto’s resolution to keep the smelter open until 2024 has emerged to slash the Government’s incentive to help cut the smelter’s costs, and it has maintained no deal would be finalised before satisfactory progress is made on arrangements for remediating the smelter site once it closes.

Grant Robertson, Finance Minister wrote to Alf Barrios, Rio Tinto’s CEO last week stating that: “Ministers were encouraged to learn that the smelter would continue to operate until the end of 2024, with the acceptance of Meridian’s electricity offer.”

The letter established that the smelter had been in separate talks with a government negotiating team until 25^th January.

But he said: “Ministers were disappointed a proposal the company put forward then did not address the remediation activities and outcomes which we have repeatedly outlined as a non-negotiable bottom line for the Crown.”

“In particular, we are concerned about how the hazardous Spent Cathode Linings (SCL) will be dealt with, your plans for adequately addressing the existing unlined landfill, and what contamination may be present in land and water under the smelter itself."

“There are serious environmental issues, potentially exacerbated by rising sea levels. Any future agreement with the New Zealand Government must adequately address these pressing environmental concerns,” he added.