Tiwai stays open four more years

Tiwai Point aluminium smelter will remain operating until the end of 2024 under a deal between Meridian Energy and Rio Tinto, allowing a managed transition for Southland.

Initial plans to close it in August this year brought several concepts for its use, including some featured in EVs and Beyond such as EV entrepreneur Nigel Broomhall’s proposal to get a Tesla Gigafactory there and  Ngai Tahu’s suggested green hydrogen plant.

“The government has been focussed on helping to ensure a deal is reached which kept the smelter open for longer than the year initially proposed by Rio,” finance minister Grant Robertson says in a joint statement with energy minister Megan Woods.

“Meridian’s announcement that it is actively developing new growth opportunities for when Tiwai closes, including process heat, IT infrastructure and green hydrogen, highlights the opportunities for high-paying jobs that the Southland region has as the transition is made,” Woods adds.

The government and Rio Tinto remain in discussion around transmission pricing and remediation of the smelter site.

The deal allows New Zealand’s Aluminium Smelter (NZAS) to continue operations there.

“Understanding the extent of the environmental impact of the smelter and removal of toxic waste from this site remain a bottom line for the government,” Robertson says.

Rio Tinto Aluminium chief executive Alf Barrios says the company is pleased to have reached an agreement with Meridian Energy that will enable the Tiwai Point smelter to continue producing some of the lowest carbon aluminium in the world.

“This agreement improves Tiwai Point’s competitive position and secures the extension of operation to December 2024,” he says.

“It also provides Rio Tinto, the New Zealand government, Meridian, and the Southland community more time to plan for the future and importantly gives our hard-working team at Tiwai and our customers the certainty they deserve.”