"Rio Tinto runs a smelter here in NZ with electricity priced at US$0.03/kWh."
Really???
You also have to add in the trasmission costs of the power, its so expensive that RIO plans to close the smelter in 4 years time.
The only factor that will save RIO's Tiwai is the high price of aluminium which is up 100% to "Aluminium US$ 3,108/t vs US$3,063/t last week"
The overall cost of power to RIO's Tiwai smelter is over US$0.07/kWh
RIO has had NZ Government handouts to stop it from closing the Tiwai Al smelter.
One handout was $30 million.
"While discussions with the New Zealand government are progressing in relation to their commitment to address the smelter’s high transmission costs, a new agreement has been reached with Meridian Energy in relation to power prices, making the smelter economically viable and competitive over the next four years."
I've been following RIO's Tiwai smelter for years as I was a RIO shareholder for more than 10 years. So don't try and BS me and say that RIO only pays US$0.03/kWh.
RIO had planned to build a smelter in Sarawak in the early days, they've regretted the decision as their biggest competion in Asia outside China is Press Metal Aluminium who are next door to OM Sarawak.
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