New Zealand’s only aluminium smelter, NZAS has a reported loss and a large write-down of its assets at a time when aluminium prices are recovering.
Pacific Aluminium, a joint venture between the Anglo-Australian multinational Rio Tinto holding 79.36% stake in NZAS, and the Tokyo-based Sumitomo Chemical Company hold 20.64% has reported a net loss after tax of $100 million at the Tiwai Point smelter and an asset write-down of $223 million for the financial year ending December’20.
Stew Hamilton, CEO, NZAS, said: “The result reflected the challenging market environment of 2020.”
“In 2021 we have seen an improved aluminium market and in conjunction with the new electricity agreement for the smelter, announced in January 2021, this enables a sustainable extension of operations at Tiwai Point.”
During the countrywide lockdown phase in 2020, NZAS shut down potline 4, a production line for the conversion of alumina into aluminium, and announced to pull down its complete operations by August 2021, following a strategic review, which fermented disquiet in regards to high energy and transmission costs.
However, NZAS and Meridian Energy negotiated an agreement on power prices in January 2021, which will last till the end of 2024.
In April 2021, Tiwai Point aluminium smelter accorded to diminish its energy usage by 11MW, due to a power crunch impact lead by a mixture of low rainfall and gas production issues.
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