Southland leaders to launch campaign to save Tiwai Aluminium from production halt

According to a recent report, Southland leaders will start a campaign to save the Tiwai Point Aluminium Smelter from being closed. Campaign leader Carla Forbes said the campaign would be about getting a fair operating environment in the smelter besides highlighting on the fact that the smelter was not only good for Southland but all of New Zealand.

"Aluminium is a smart metal, it's in every iPhone, in aeroplane wings ... it's the metal of the future and we make the world's best. It's a vital component in the technological landscape," said Forbes.

Smelter owner Rio Tinto, however, has not made any decisions about its future. It is reviewing different options that also include closure, as low aluminium prices and high energy costs may become threats to its ongoing viability.

Rio is also planning to talk with the New Zealand Government and energy providers to explore options, according to the report.

Come what may, Forbes is of an opinion that closure should not be an option. It is not something Southland wants to see.

"We need to do everything which is practical to fight to keep the smelter with us here in Southland," Forbes emphasised.

She mentioned that the smelter was a great contributor to New Zealand accounting for 6.5 per cent of Southland’s GDP, with export revenue of around $1 billion a year. It has 1000 direct employees and provides 1200 indirect jobs.

Forbes also noted that uncompetitive power costs weighed down this smelter, which happened to be a producer of the highest purity and lowest carbon aluminium in the world. Nearly $200 million had been charged over the smelter in last 10 years for transmission infrastructure.

"The smelter's owners don't want a subsidy, they should be given a rebate," she demanded.

She also said that people thought they would get cheap power if the smelter closed, but that not so simple.

"Firstly you would have to spend several hundred million dollars on upgrading the transmission grid to get the power out, as right now it can't flow north. Secondly, Tiwai has to give 12 months' notice of its intention to terminate its power contract giving generators plenty of time to retire their least economic plant."

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