Tiwai Point Aluminium Smelter to withdraw non-essential services by the end of 2020

According to a statement by a contactor associated with Tiwai Point Aluminium Smelter, all non-essential services will soon be withdrawn from the Southland plant. The contractor even said, on a condition of anonymity, that the New Zealand Aluminium Smelter staff held a meeting with some suppliers this week to notify the information.

The man said the meeting was to discuss the use of existing stocks from suppliers amid the ongoing uncertainty.

Another source informed that the services which have no direct impact on the smelter’s functionality would be suspended by the end of 2020.

Gore Mayor and Southland Mayor forum chairman Tracy Hicks said that he also heard about the notifications given to contractors.

"I can’t say for sure but I have heard ... some notifications [were] given to contractors," Hicks said.

He also said that Rio Tinto had made it clear earlier that it would close the operation of the smelter if no resolution could be found by Christmas.

"We’ve had certainly reassurances over the past two months that the Government is doing what they can to work with Rio [Tinto],” added Hicks.

A spokesman for Finance Minister Grant Robertson also said that the government officials were corresponding with Rio Tinto and working towards an agreement.

A Rio Tinto spokeswoman, however, declined to comment.

The financial review of the plant showed the business was no longer viable given the high energy costs and challenging outlook for the aluminium industry.

During the election campaign, the Labour Party and leader Jacinda Ardern committed to working with Rio Tinto and Transpower to reach an agreement for saving 1000 direct and 1600 indirect jobs.