Meridian Energy, New Zealand’s top power producer, on Wednesday played down market expectations that Rio Tinto would keep its New Zealand Aluminium Smelter (NZAS) open when it decides on the plant’s fate in the next month.
The global miner’s smelter at Tiwai Point is New Zealand’s largest power consumer, using around 12% of the country’s electricity. A shutdown of the plant would trigger a sharp drop in power prices and deal a hefty blow to the sector.
Rio Tinto said last October it would review the plant’s future. NZAS said this week all options, including curtailment and closure, were being considered, with an update expected in the first quarter.