NZ smelter gets long-term power deal

Saturday, Oct 06, 2007
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New Zealand Aluminium Smelters and Meridian Energy announced they have signed an 18-year power supply agreement for the 322,000tpy smelter. The agreement will cover 527MW of continuous consumption for the smelter running from Jan 1, 2013 through Dec 31, 2030. The deal which follows what Meridian called tard and tough negotiations ensures the long-term viability of the plant, although neither side is disclosing the exact pricing. NZAS, which is 79% owned by Rio Tinto and 21% by Sumitomo, had previously dropped some heavy hints that it would consider closing the Tiwai Point smelter in the event it couldn't get a competitive power deal. Meridian is New Zealand 's biggest power generator and most of the power for the smelter will come from the Manapouri hydro power station.

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