Tiwai Point smelter Entailed Production Cut due to Rising Power Price

New Zealand-based Tiwai Point smelter has started to cut about 5% of production due to increasing electricity price caused by low water levels in hydro systems in the country. The smelter enjoys a long-term power-supply contract for its 90% power demand, while the 10% is bought from spot markets. “This will reduce power demand by 30MW, and primary aluminum production at the smelter will correspondingly cut by 1,400 tons per month.”said Paul Hernburrow, general manager of the smelter, adding “we have done our best in reducing power demand in the past weeks, and made the decision in view of current power conditions and after talks with power suppliers.” New Zealand is currently facing serious power shortage, as winter is an intense power-utilization period, power supplier Meridian said it’s in talks with several large industrial consumers over reducing power loads, avoiding the possibility of mandatory cut in power supply. Rio Tinto Alcan and Japan’s Sumitomo Corp teamed in holding Tiwai Point smelter, with the former holding a controlling stake. COPYRIGHT All rights reserved. The copying, republication or redistribution of WAM News Content, including by framing or similar means, is expressly prohibited without the prior written consent of WAM.