MELBOURNE, Feb 26 (Reuters) - Meridian Power MEL.NZ, New Zealand's prime energy producer, on Wednes
MELBOURNE, Feb 26 (Reuters) – Meridian Power MEL.NZ, New Zealand’s prime energy producer, on Wednesday performed down market expectations that Rio Tinto RIO.AX would preserve its New Zealand Aluminium Smelter (NZAS) open when it decides on the plant’s destiny within the subsequent month.
The worldwide miner’s smelter at Tiwai Level is New Zealand’s largest energy shopper, utilizing round 12% of the nation’s electrical energy. A shutdown of the plant would set off a pointy drop in energy costs and deal a hefty blow to the sector.
Rio Tinto RIO.L mentioned final October it will evaluation the plant’s future. NZAS mentioned this week all choices, together with curtailment and closure, have been being thought of, with an replace anticipated within the first quarter.
Meridian Chief Govt Neal Barclay mentioned it was logical to imagine Rio Tinto wouldn’t shut the smelter, which he dubbed “Smexit”, because the plant is cash-positive and produces excessive purity, low carbon intensive aluminium.
To maintain it open, Meridian has provided decrease energy costs and…