Rio Tinto to review future of New Zealand’s Aluminium Smelter

23 October 2019

Rio Tinto will conduct a strategic review of its interest in New Zealand’s Aluminium Smelter (NZAS) at Tiwai Point, to determine the operation’s ongoing viability and competitive position.

Under current market conditions and with high energy costs, we expect the short to medium outlook for the aluminium industry to be challenging and this asset to continue to be unprofitable. Rio Tinto intends to hold discussions with the Government of New Zealand and energy providers to explore options and identify economically viable solutions to find a pathway to profitability for the asset.

Rio Tinto Aluminium chief executive Alf Barrios said “The aluminium industry is currently facing significant headwinds with historically low prices due to an over-supplied market. This means that many aluminium providers are reviewing their positions.

“Rio Tinto will work with all stakeholders including the government, suppliers, communities and employees in order to find a solution that will ensure a profitable future for this plant.”

The strategic review will consider all options, including curtailment and closure and will be complete in the first quarter in 2020.

NZAS is a joint venture between Rio Tinto (79.36%) and Sumitomo Chemical Company Limited (20.64%) and employs around 1000 people.

Contacts:

Investor Relations, London

Menno Sanderse
T: +44 (0) 20 7781 1517
M: +44 (0) 7825 195 178

David Ovington
Office: +44 (0) 20 7781 2051
Mobile: +44 (0) 7920 010 978

Investor Relations, Australia

Natalie Worley
Office: +61 (0) 3 9283 3063
Mobile: +61 (0) 409 210 462

Amar Jambaa
Office: +61 (0) 3 9283 3627
Mobile: +61 (0) 472 865 948

Media Relations, London

Illtud Harri
Mobile: +44 (0) 7920 503 600

David Outhwaite
Office: +44 (0) 20 7781 1623
Mobile: +44 (0) 7787 597 493

Media Relations, Australia

Jonathan Rose
Office: +61 (0) 3 9283 3088
Mobile: +61 (0) 447 028 913

Matt Chambers
Office: +61 3 9283 3087
Mobile: +61 433 525 739

Jesse Riseborough
Office: +61 (0) 8 6211 6013
Mobile: +61 (0) 436 653 412

Media Relations, Americas

Matthew Klar
Mobile: +1 514 608 4429

Media Relations, Asia

Grant Donald
Office: +65 6679 9290
Mobile: +65 9722 6028