Campaign begins to keep Tiwai smelter open

THE gloves are off in Southland.

Regional leaders will launch a ‘‘Fight for Fairness’’ campaign, to avoid the closure of Tiwai Point Aluminium Smelter.

Invercargill Mayor Sir Tim Shadbolt, deputy mayor Toni Biddle and Southland Chamber of Commerce president Neil McAra met earlier this week to prepare a strategy to advocate for fair operating conditions.

Cr Toni Biddle said the region did not want a ‘‘handout’’.

‘‘Honestly, we are fighting for fairness here. We don’t want a payout from the government . . . This is our community which will be definitely affected in multiple ways. The ripple effect of the closure would be catastrophic to our region and people don’t realise others [in whole country] will be affected, too.’’

Mr McAra said closure would prevent the region’s goal of attracting 10,000 people by 2025.

‘‘Small business will close in consequence of this.’’

He said the smelter spent about $450 million every year and accounted for 6.5% of Southland’s GDP. Its export revenue was about $1 billion a year.

Sir Tim said the aluminium was the ‘‘metal of the future’’.

‘‘It has a real impact on all our lives. If you have a cellphone or a computer — it will have a bit of Tiwai in it.’’

He said it was an additional blow to the region, following proposed tertiary reform earlier this year.

Campaign leader Carla Forbes said the Manapouri power station was built to power the smelter.

‘‘The smelter is still doing exactly what the government that first brokered the deal with its owners wanted it to do — turning Fiordland’s rain into money by making aluminium. And it is some of the highest purity, lowest carbon aluminium in the world. New Zealand should be proud and embrace it.’’

In a transcript document obtained by the Otago Daily

Times, Meridian Energy chief executive Neal Barclay told the company’s investors they were engaged with the owners of the smelter through the review period, but Rio Tinto would be deciding the outcome.

‘‘I think it is important to note the smelter owners have the right, have always had the right, to issue the 12 months’ notice to reduce the consumption to terminate their contract with us. And the fact that they haven’t done so suggests that they are actively looking for a solution.’’

He said it would be a major call for Rio Tinto to close a smelter that produces some of the cleanest and purest aluminium globally.

‘‘I’m not saying they won’t do it, but they do have a few headwinds in terms of that decision.

‘‘It’s also common knowledge that the smelter receives the lowest electricity price in the country, but they’ve been very clear that they’re looking for a price that’s significantly lower again. It’s important to note our electricity generation is only one part of the equation.’’

NZAS chief executive and site general manager Stew Hamilton said the strategic review would consider all options, including a ‘‘reduction in power costs which would enable the smelter to keep running at full capacity, operating as a smaller smelter, and closure.’’

He said members of the Rio Tinto closure team would travel to the Tiwai site next week, following the conclusion of Rio Tinto’s strategic review.

‘‘Our local community has made it very clear they wants us to continue being a vibrant part of Invercargill and for the smelter to keep operating at full capacity and so do we.’’