MfE says Rio Tinto's legal obligation to remediate Tiwai Point unclear

Friday, 26 February 2021

An aerial photo of the Tiwai Point aluminium smelter with Bluff township and Bluff Hill in the backdrop.

The Ministry for the Environment says it is unclear whether Rio Tinto is under any legal obligation to remediate the site of its smelter at Tiwai Point after it closes.

The smelter says it is currently conducting an extensive Closure Study to understand any environmental impacts on the Tiwai Point site and to ensure that the operation will be closed in a responsible manner.

In January, New Zealand's Aluminium Smelter announced the site would stay open for four more years, after it announced in July last year it would close in August 2021.

Ministry for the Environment chief executive and Secretary for the Environment Vicky Robertson told the Environment Select Committee on Thursday that the legal liability for Rio Tinto to remediate the site once the smelter closed had been ‘’difficult to pin down”.

Robertson was being questioned at an annual review of the Ministry for the Environment and the Climate Change Commission, before the Environment Select Committee.

* Tiwai aluminium smelter to stay open until end of 2024

* Government rules out Christmas decision on future of Tiwai Point aluminium smelter

Environment Select Committee chairperson Eugenie Sage. (file photo)

Select committee chairperson Eugenie Sage said there had been media coverage that a previous government had wiped any liability of Rio Tinto for the remediation of the site.

She asked Robertson whether that was the Ministry’s understanding, and what Rio Tinto’s responsibilities were at the Tiwai site.

Robertson said that there were ‘’still tensions about Tiwai’s remediation of the site generally’’.

“We are in ongoing conversations with them about remediation, and I’m pleased to say that remediation is part of the conversation about whether Rio Tinto stays or not, and it’s been something that we, and also supported by Treasury … it’s definitely a strong part of what is required of them should they leave.

“The difficulty is the amount they are liable for. The quantum has always been the issue.'’

Labour MP Dr Duncan Webb asked whether there was an acceptance that Rio Tinto was liable for the remediation of the site both contractually and under the appropriate regulations.

Robertson replied: “I think it’s a little less clear legally”.

Webb asked whether that meant ‘’contractually or … is that because of the contracts that have been entered into, or because of arrangements with government, or because of the law as it stands?’’

Robertson replied: “In terms of the legal liability that has been difficult to pin down. Contractual liability of the moral liability … they would argue differently about one thing and we would argue another.’’

A New Zealand Aluminium Smelters spokesperson said it took its operating responsibilities seriously and in accordance with all relevant legal and regulatory requirements.

The spokesperson said its Closure Study process was a lengthy one, involving the expertise of several independent environmental scientists.

“The first phase of this study is due to be completed late this year and includes extensive consultation with officials, our local community and Ngāi Tahu as mana whenua.’’

At the meeting on Thursday, Sage also asked about the $300,000 that the Ministry had provided to Environment Southland to enter the site, and asked how closely the Ministry was involved in looking at what was on the site at Tiwai, and what potential liabilities to the Crown once the smelter closes.

“It’s the regional council’s role so we’ve provided them funding to go in and test those sites … we are in weekly contact with the council to understand progress,’’ Robertson said.

RNZ reported that the smelter company would not reveal its plans for more than 100,000 tonnes of hazardous waste SCL [spent cell liner waste], despite international industry guidelines it has signed up to that say it should.

The cyanide-laced waste is stockpiled on a concrete pad the size of about two football fields, one kilometre east of the main Tiwai plant and 85 metres from the south facing beach next to Foveaux Strait, which is eroding.