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- Release Date: 28/03/13 10:34
- Summary: GENERAL: MEL: New Zealand Aluminium Smelter's electricity contract
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MEL
28/03/2013 08:34
GENERAL
REL: 0834 HRS Meridian Energy Limited
GENERAL: MEL: New Zealand Aluminium Smelter's electricity contract
For immediate release: Thursday, 28 March 2013
Meridian was approached by Pacific Aluminium, a business unit of global
mining giant Rio Tinto Ltd, the majority shareholder of New Zealand Aluminium
Smelters Ltd (NZAS), in July 2012, to discuss potential changes to its
existing electricity contract.
Since talks began, various options have been discussed and Meridian has
offered a number of changes and concessions to the existing contract.
Chief Executive of Meridian Energy, Mark Binns, says that Meridian has
advised Pacific Aluminium of its 'bottom line' position.
"Despite significant effort by both parties there remains a major gap between
us on a number of issues, such that we believe that it is unlikely a new
agreement can be reached with Pacific Aluminium," says Mr Binns.
In the event no agreement can be reached, Meridian will seek to engage with
Rio Tinto and Sumitomo Chemical Company Ltd, the shareholders of NZAS, who
will ultimately decide on the future of the smelter.
Meridian signed a new contract with NZAS in 2007, after three years of
negotiations. This current contract commenced on 1 January 2013 and remains
unaltered and binding on the parties.
In October 2011, Rio Tinto announced it would restructure its worldwide
aluminium business and said interests in six of its Australian and New
Zealand assets (including the smelter at Tiwai Point) would be transferred
into a new business unit called Pacific Aluminium, and sold.
ENDS
For more information contact:
Claire Shaw
Corporate Communications Manager
Meridian Energy
021 370677
[email protected]
meridian.co.nz
End CA:00234659 For:MEL Type:GENERAL Time:2013-03-28 08:34:13
