New Zealand / Business

Community demands clarity on Tiwai Point smelter's plans

18:54 pm on 24 May 2023

Tiwai Point Aluminium Smelter. Photo: Otago Daily Times / Stephen Jaquiery

The future of Tiwai Point Aluminium Smelter remains uncertain, despite its chief executive saying they are working towards a multi-year contract.

In 2020, owner Rio Tinto announced its plans to wind down the smelter by the following year, citing high energy costs and a challenging outlook.

But instead of closing in 2021, it made a deal with power companies to keep the smelter operational for another four years.

The future of Tiwai Point has been a hot topic at the Murihiku Regeneration Energy and Innovation Wananga in Invercargill, with a panel discussion including representatives from Rio Tinto, the New Zealand Aluminium Smelter, and Te Rūnaka o Awarua.

One attendee told the crowd it was time to know what would happen to the smelter.

"The longer the choice is out there, the more uncertainty it creates for the country, for the parties, I guess, in question, and all this good intention is like a hope until that's done.

"So I would just urge parties to get together and get a deal done, one way or the other."

He was confident certainty would drive more innovation and opportunities in the future.

However, smelter chief executive Chris Blenkiron told the wananga he could not provide the answers they were after yet, only reassurances.

"There is no ambiguity. We want to be here and we want to be here for the long term," he said.

"That's not just our decision though - we need to be working with our partners, and they need to want that too."

The discussions had been going on since last year with multiple generators, not just Meridian Energy, he said.

"We are talking of contracts in excess of 15 years. That's what we're aiming for, that's what we're talking about."

In his speech he committed to remediating the smelter site, describing it as an anchor

"We are remediating the site irrespective of 2024 or not. That work will continue."

Last year, a memorandum of understanding was signed between the smelter, Rio Tinto, Murihiku Rūnanga and Te Rūnanga o Ngāi Tahu to restore the environment at the Tiwai Point Peninsula.

The smelter will host two community forums next week - one on Wednesday at 5.30pm at Ascot Park and the other on Thursday at Bluff Town Hall at 5.30pm.