Ann: GENERAL: MEL: Smelter owner gets extension

• Release Date: 01/07/15 08:30
• Summary: GENERAL: MEL: Smelter owner gets extension
• Price Sensitive: No
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					MEL
01/07/2015 08:30
GENERAL
PRICE SENSITIVE
REL: 0830 HRS Meridian Energy Limited

GENERAL: MEL: Smelter owner gets extension

Meridian Energy and New Zealand Aluminium Smelters Ltd (NZAS) have last night
agreed to amend their electricity agreement by extending the date on which
NZAS can give a termination notice to Meridian under the electricity
agreement between them. The date on which a notice can be given will move
from 1 July 2015 to 3 August 2015. All other terms of the Agreement remain
unchanged.

"NZAS has been in discussions with a number of parties, including Meridian,
with respect to its electricity requirements at its Tiwai Point smelter. NZAS
requires more time to fully analyse its options before making a decision,"
says Meridian Chief Executive, Mark Binns.

"We think it is in all parties' interests to ensure that a decision is based
on the most complete information."

In August 2013, Meridian concluded a renegotiation of the New Zealand
Aluminium Smelters Ltd electricity contract. The renegotiated contract
provides the smelter with greater flexibility in its operations. The July 1
date, now extended to 3 August, was the first termination right provided for
in the contract.

Under the Agreement NZAS has various rights, including the ability to reduce
the contract quantity from 572 MW to 400 MW with 12 month's notice prior to
31 December 2015. NZAS retains the right to terminate the agreement by giving
12 month's notice from 1 January 2017.
End CA:00266422 For:MEL    Type:GENERAL    Time:2015-07-01 08:30:09