Jobs boost for Southland as smelter plans to increase production
New Zealand Aluminium Smelters will start its fourth potline, increasing production at the Tiwai Point smelter by about 9.2 per cent, and creating up to 32 jobs in Southland.
The company, which is controlled by mining giant Rio Tinto, has secured a power contract for 50 megawatts per hour until December 2022 allowing the potline to restart since it was mothballed six years ago, NZAS said in a statement.
The aluminium smelter, which uses about an eighth of the country’s electricity, expects to boost aluminium production by 85 tonnes a day, which amounts to 31,000 tonnes annually. That would lift the smelter’s existing production of 337,000 tonnes by 9.2 per cent.
“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,” NZAS chief executive Gretta Stephens said.
“NZAS is well-placed to offer metal that is increasingly sought after in a
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 Gretta Stephens
low carbon global economy.”
The smelter mothballed the potline in April 2012 when global aluminium prices were in a trough, and at a time when Rio Tinto was considering selling its Pacific Aluminium portfolio, which Tiwai falls under. In late 2012 it halted planned capital spending, downsized its workforce, then played hardball renegotiating contracts with Meridian Energy in the lead-up to the partial privatisation and float of the electricity generatorretailer that ultimately attracted a $30 million government sweetener.
Meridian said the contract set an agreed price for the annual 438 gigawatt hours supply and supported by contracts with Contact Energy, Genesis Energy and Mercury NZ.
“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,” said Meridian chief executive Neal Barclay.