Tiwai Point Smelter Nets NZD 207 million Profit

The Tiwai Point aluminium smelter has posted an increased bottom line result, although underlying profits have fallen in the face of volatile prices and power costs. New Zealand Aluminium Smelters made a net profit of NZD 207 million in the 12 months to December, compared with a net loss of NZD 18 million the year earlier. However, the firm's underlying profit fell by more than two-thirds to NZD 22million , largely because of the accounting writedown in the value of the hedges it uses to insure against power price volatility.

Chief executive Mr Stew Hamilton said the Bluff-based smelter continued to face significant market challenges. He said that "We are facing a very tough time right now with the LME (London Metals Exchange price) down to USD 1761 per tonne and predicted ongoing volatility in the market."

He said the global price peaked at USD 2259 a tonne in the middle of last year before it fell. Production was up marginally to 340,111 tonnes, even though the company re-opened a fourth production line last year.

But Mr Hamilton also renewed the company's long standing complaint about the high level of local power costs. Mr Hamilton said that "We pay one of the highest transmission prices of any smelter in the world and our overall power cost is high by international standards. That makes it incredibly hard for NZAS to compete in the highly competitive aluminium market no matter how efficient our team is.”

Hamilton said even though changes to transmission prices are expected it will be three years before it will likely see any benefit, and in effect it continues to pay for improvements to the national grid in the North Island.

Copyright and Exemption Declaration :¢ÙAll articles, pictures and videos that are marked with "China Aluminum Network" on this website are copyright and belong to China Aluminium Network (www.alu.com.cn). When transshipment, any media, website or individual must list the source from "China Aluminium Network (www.alu.com.cn)". We seek legal actions against anyone that disobey this. ¢ÚArticles that marked as copy from others are for transferring more information to readers, do not represent or endorse their opinions or accuracy and reliability. When other media, website or individuals copy from our website, must keep the source. Anyone that changes the articles' sources will hold the responsibilities for copyright and law problems. We also seek legal actions against anyone that disobey this. ¢ÛIf any articles copied by our website concern the copyright and other problems, please contact us within one week.