Hopes smelter closure can be pushed out

Prime Minister Jacinda Ardern told New Zealand Aluminium Smelter (NZAS) workers she believed the time frame to closure of the smelter could be significantly longer than the 14 months announced last week.

Ms Ardern and Government ministers met mayors, community leaders, Tiwai workers and union representatives in Invercargill yesterday about an effective transition to the closure of the smelter.

The smelter is set to shut in August next year.

Tiwai workers and Etu delegates Cliff Dobbie and Owen Evans have been working at the smelter’s pot room as process controllers for 32 and 20 years, respectively.

They were part of a private meeting with Etu representatives, workers, Ms Ardern and Finance Minister Grant Robertson.

Ms Ardern told them she hoped the time between the smelter’s announcement and closure would be much longer than the announced 14 months.

"They were hoping for a little bit longer, weren’t they?

"Transition would go between three and five years. That’s what they were sort of hoping," Mr Dobbie said.

In Invercargill yesterday are (from left), Regional Economic Development and Infrastructure...
In Invercargill yesterday are (from left), Regional Economic Development and Infrastructure Minister Shane Jones, Energy and Resources Minister Megan Woods, Te Tai Tonga MP Rino Tirikatene, Prime Minister Jacinda Ardern, List MP Liz Craig and Finance Minister Grant Robertson. PHOTO: CRAIG BAXTER
Ms Ardern discussed with community leaders economic opportunities such as aquaculture, research and development of food production, hydrogen, Tesla and data centres.

"The opportunities here are significant," Ms Ardern said.

"News recently of Rio Tinto’s plans to close the smelter here ... gives good reason for us to speed up the work that we’re doing.

"But what has been clear at the meetings today is that we are all in agreement that a transition is needed. That everyone wants high-waged, decent jobs in Southland.

"The question is the timeframe we are all working to."

She said ultimately the closure decision would be determined by Rio Tinto and power supplier Meridian.

Meridian chief executive Neal Barclay confirmed the parties were still talking.

"Meridian is currently in discussions with Rio Tinto about a staged exit. However, any decision on that front is ultimately up to Rio Tinto," he said.

"From Meridian’s perspective, we’ve been seriously negotiating with Rio Tinto for quite some time.

"We made a meaningful offer, but ultimately Rio Tinto has decided to walk away."

There had been some speculation Meridian might offer the smelter an improved deal that would slow the smelter’s closure and buy time for grid upgrades that would be needed to carry power from Manapouri further north.

It has been reported it could take five to eight years and more than $500million to complete work to efficiently distribute surplus power from the South across the whole country.

A Rio Tinto spokeswoman said any offer to improve the total energy cost to the smelter would be reviewed and considered in good faith by NZAS.

Southland Chamber of Commerce chairman Neil McAra said the talks held with Ms Ardern yesterday were positive.

"Everyone realises a 12-month closure is in no-one’s interest and it’s now time to work with all parties to find a solution."

Southland needed time to transition so jobs could be retained in the long term, he said.

Ms Ardern brushed aside comments Deputy Prime Minister Winston Peters had made earlier in the day about the need for the Government to step in and save the smelter.

Comments

Two ingredients are needed to make hydrogen, oxygen and sea salt; electricity and sea water of which Tiwai has an abundance.

 

 

drivesouth-pow-generic-1.png

Our journalists are your neighbours

We are the South's eyes and ears in crucial council meetings, at court hearings, on the sidelines of sporting events and on the frontline of breaking news.

As our region faces uncharted waters in the wake of a global pandemic, Otago Daily Times continues to bring you local stories that matter.

We employ local journalists and photographers to tell your stories, as other outlets cut local coverage in favour of stories told out of Auckland, Wellington and Christchurch.

You can help us continue to bring you local news you can trust by becoming a supporter.

Become a Supporter