Rio Tinto

All the cards do not rest with Rio Tinto in the stalled negotiations over electricity contracts with the Tiwai Point aluminium smelter, WHK New Zealand chief executive Phil Mulvey says.

Central to operations of debt-laden Rio Tinto's loss-making and ageing Tiwai Pt aluminium smelter in Southland has been the roller-coaster ride of global aluminium prices - at present more than 40% down on the all-time 2008 high.

The Government has fallen into a commercial trap set and sprung by resource giant Rio Tinto during negotiations on electricity contracts for the Tiwai Point aluminium smelter, Labour state-owned enterprises (SOE) spokesman, Clayton Cosgrove, said yesterday.

Mining giant Rio Tinto - which has its loss-making Tiwai Pt aluminum smelter near Bluff for sale - is considering shutting a similarly loss-making aluminium refinery in the Northern Territory, which employs 1600 people.