"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."
https://www.riotinto.com/en/news/re...al-with-Meridian-to-extend-operations-to-2024I'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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