Rio Tinto (New York Stock Exchange: RIEO) said on Thursday it would continue operations at its Tiwai Point aluminum smelter in New Zealand until at least 2044 after agreeing to new electricity supply agreements.
RIO is the parent organization of New Zealand Aluminum The smelter, which said it had signed a series of 20-year electrification arrangements to supply a total of 572 megawatts of power to meet the facility's entire electricity needs.
The company also said it would buy out its 20.6% minority partner in the plant, Sumitomo Corporation, for an undisclosed price to gain 100% ownership.
Jerome Pécresse, president of Rio Tinto (RIO) Aluminum, said the deals secure the long-term future of the Tiwai Point smelter, which employs nearly 1,000 full-time employees and contractors.
The company said in 2021 it may close the plant, citing rising energy costs and the future outlook for the aluminum industry.
