Rio Tinto and Contact Energy yesterday signed a letter of intent to restart the row of electrolytic cells used in the smelting of aluminum, which has been inactive since 2020.
Mr Campbell said this was ‘‘wonderful news’’.
‘‘It’s a great indication of confidence in the region.’’
The agreement provides 50 megawatts (MW) to restart production.
The smelter would become a long-term customer for Contact’s recently consented Southland Wind Farm, helping unlock new renewable generation and regional economic growth.
Approval was granted for the wind farm in April and it is expected to generate electricity at a rate of over 325MW.
Mr Campbell said this was a great opportunity to ‘‘utilise renewable energy’’ and reopen the fourth potline which he described as the most technologically advanced.
He was involved in the construction of the line as general manager of technology at Rio Tinto and said it would be great to see it back up and running.
Rio Tinto external affairs director Simon King said there were potentially many strong economic benefits for the region.
‘‘If restarted, line four could add around $NZ100 million in annual export revenue, and approximately 30,000 tonnes more aluminium per year.’’
Rio Tinto aluminium Pacific operations managing director Armando Torres said the agreement showed commitment to ‘‘low carbon growth and energy security’’.
‘‘This letter of intent represents a practical step towards restarting line four at Tiwai, strengthening New Zealand’s position as a producer of low-carbon aluminium, supporting jobs, increasing exports and contributing to a more resilient electricity system.’’
The smelter’s general manager Michelle Henderson said it hoped to have line four up and running by 2030 — but that could be brought forward.
Contact chief executive Mike Fuge said the company had been focused on renewable energy and this collaboration showed how it could be applied in an industrial setting.
‘‘This letter of intent helps underpin our Southland Wind Farm and shows how industry and renewable energy can work together to deliver long-term benefits for both Southland and New Zealand.’’
