New Zealand Aluminium Smelter at Tiwai Point Reports Loss
STUFF reported that The New Zealand Aluminium Smelter has posted a loss and a large write-down of its assets, but aluminium prices are rebounding. Pacific Aluminium New Zealand reported a net loss after tax of NZD 100 million at the Tiwai Point smelter, and an asset write-down of NZD 223 million, at the end of its financial year in December 2020.
New Zealand Aluminium Smelter CEO Mr Stewart Hamilton said the result reflected the challenging market environment of 2020. He said “In 2021 we have seen an improved aluminium market and in conjunction with the new electricity agreement for the smelter, announced in January 2021, this enables a sustainable extension of operations at Tiwai Point.”
As New Zealand went into lockdown NZAS closed down potline four, a production line for the conversion of alumina into aluminium, and threatened to shut down all of its operations by August 2021 after a strategic review raised concerns about high energy and transmission costs.
Pacific Aluminium is a joint venture between the Anglo-Australian multinational Rio Tinto who own 79.36% of NZAS, and the Tokyo-based Sumitomo Chemical Company who own 20.64%.