Tiwai aluminium smelter a 'priority' for new Government

Monday, 19 October 2020

A spokesman for Finance Minister Grant Robertson says a priority of the new Government is to reach an agreement with the owners of the Tiwai Point aluminium smelter so jobs are preserved and the plant stays open for three to five more years.

A priority of the new Government is to reach an agreement with the owners of the Tiwai Point aluminium smelter that will result in the plant near Bluff staying open for three to five more years, a spokeman for finance minister Grant Robertson says.

The Government has yet to be formed so it is unable to make decisions or reach agreements until sworn in.

However, the spokesman said the Labour Party stood by its policy to reach an agreement with smelter owner Rio Tinto as soon as possible to preserve jobs, facilitate a transition over three to five years and support local economic development.

“This will be a priority for the new Government.”

* Election 2020: Labour promises to keep Tiwai smelter open longer

* Prime Minister Jacinda Ardern heading south to talk Tiwai

* No Tiwai Point aluminium smelter decision before election, Rio Tinto indicates

Gore District Mayor Tracy Hicks says in pure political terms Tiwai may not be a vote winner.

Before the election, leader Jacinda Ardern also said if elected, Labour wanted to sort a deal with Rio Tinto that would keep the smelter open for a further three to five years.

Ardern stressed that Labour would not subsidise Rio Tinto's power costs, but would ask Transpower to review its line charges to help get a deal done.

Gore District Mayor Tracy Hicks, chair of the Southland mayoral forum, said on Monday that Southland’s leaders now planned to have more pointed talks with the Labour Party about the smelter’s future.

Labour Party leader Jacinda Ardern, celebrating election victory with supporters, is sticking by her party’s pre-election promise to try and sort a deal with Rio Tinto that will keep the Tiwai aluminium smelter open for a further three to five years.

Rio Tinto announced in July it would close the plant in August 2021, given the high energy costs and a challenging outlook for the aluminium industry.

Since then, Southland leaders, including Hicks, have been lobbying the Government to step in so the smelter can stay open for at least five more years.

The Southland’s leaders were to meet again on Monday evening to discuss their next step.

Hicks said constructive discussions before the election had been held with all major political parties and Rio Tinto.

“Now that we know the major party going forward will be Labour, as the Government in waiting, we will be able to have a bit more of a pointed conversation with them.”

He wanted the Government to give a definitive view on what it saw as the lifespan for Tiwai, and what involvement it would have in helping Southland transition from the smelter to other industries.

He was hopeful the smelter would remain open for at least five more years.

However, the time to do a deal is ticking, with Rio Tinto previously saying that unless it can get an agreement by the end of December, its plan will be to close in August 2021.

A Rio Tinto spokeswoman said it would respond to Stuff questions about the issue on Tuesday.

If the smelter, near Bluff, was to close, 1000 jobs at the plant would be lost and another 1600 jobs indirectly connected to the smelter would be under threat.