9th Jul 2020 08:33
(Alliance News) - Rio Tinto PLC on Thursday said it will wind-down and then eventually close its New Zealand aluminium smelters amid a "challenging" time for the industry.
The FTSE 100-listed miner said NZAS has served Meridian Energy with a notice to terminate the power contract which ends in August next year.
The news follows a strategic review which Rio said showed "the business is no longer viable given high energy costs and a challenging outlook for the aluminium industry".
The smelter made Rio an underlying loss of NZD46 million, about USD32.1 million, in 2019.
"Extensive discussions with a wide range of interested parties have failed to secure a power contract that will enable the operation to become both competitive and profitable," the company added.
"During the next 14 months, NZAS and Rio Tinto will work closely with partners as detailed planning is undertaken to wind-down operations, and eventually close the smelter."
Rio Tinto shares were 0.7% higher at 4,645.50 pence each in London on Thursday morning.
By Eric Cunha; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Rio Tinto