New Zealand Aluminium Smelters to further reduce production at Tiwai Point smelter

New Zealand Aluminium Smelters Limited (NZAS) announced that it will reduce its aluminium production by an additional five per cent at its 350,000-tonne Tiwai Point smelter in Southland, New Zealand. The company is working with its power supplier, Meridian Energy, to help reduce demand on the national electricity grid.

NZAS previously announced on 2 May 2008 that it was temporarily reducing power demand by 30MW.

Today's announcement brings the total reduction in power demand to 66MW, equivalent to a decrease of approximately 2,900 tonnes of aluminium per month. Both measures combined equate to approximately 10 per cent of our annual production capacity.

Close to ninety per cent of power needs for NZAS are covered by a long-term contract with Meridian Energy for the supply of electricity, while it is exposed to market conditions for the remaining portion of its requirements.

"Our relationships with our customers and suppliers are important to our business and we are working with them to ensure that any adverse impact to current production schedules is minimised," said NZAS General Manager, Paul Hemburrow.

NZAS is a joint venture operation owned by Rio Tinto Alcan Limited (79.36 per cent) and Japan's Sumitomo Chemical Co. Ltd (20.64 per cent). The smelter employs 920 people and its total export revenue in 2007 was in excess of NZ$1.1 billion.

For more information contact: Diane Collier on 027 218 7314

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