Rio Tinto (NYSE:RIO) said Thursday it will maintain operations at its Tiwai Point aluminum smelter in New Zealand until at least 2044 after agreeing to new electricity supply agreements.
Rio (RIO) is the parent organization of New Zealand Aluminum Smelters, which said it signed a series of 20-year electricity arrangements to provide an aggregate of 572 MW of power to meet the facility’s full electricity needs.
The company also said it is buying out its 20.6% minority partner in the plant, Sumitomo Corp., for an undisclosed price to take 100% ownership.
Rio Tinto (RIO) Aluminum head Jerome Pecresse said the deals secure the long-term future of the Tiwai Point smelter, which employs ~1,000 full time-equivalent staff and contractors.
The company said in 2021 it could close the plant, citing high energy costs and the outlook for the aluminum industry.
