Kiwis Eye Cheaper Power Bills As Rio Tinto Mulls Smelter Future
Fahad Shabbir (@FahadShabbir) Published October 23, 2019 | 01:17 PM
New Zealanders could see their electricity bills plunge after Rio Tinto said Wednesday it was considering closing an energy-hungry aluminium smelter, potentially leaving the country awash with excess capacity
Wellington, (UrduPoint / Pakistan Point News - 23rd Oct, 2019 ) :New Zealanders could see their electricity bills plunge after Rio Tinto said Wednesday it was considering closing an energy-hungry aluminium smelter, potentially leaving the country awash with excess capacity.
But the announcement spooked investors and sent shares in energy firms plummeting at the prospect of cheap electricity flooding the national grid.
Meridian Energy tumbled 8.67 percent, Mercury NZ was down 8.35 percent, Genesis Energy slipped 7.17 percent and Contact Energy was off 9.74 percent.
The NZX 50 index ended down more than two percent.
The sell-off came after Rio said it would carry out a strategic review into the future of its Tiwai Point operations -- site of the country's only aluminium smelter -- to be completed in the first quarter of next year.
"Under current market conditions and with high energy costs, we expect the short to medium outlook for the aluminium industry to be challenging and this asset to continue to be unprofitable," it said in a statement.
Rio said the review would consider all options "including curtailment and closure".
Tiwai Point employs about 1,000 people and is New Zealand's largest electricity user, accounting for about 13 percent of the country's entire output.
It has faced difficulties before and received an NZ$30 million ($20 million) government bailout in 2013 in return for Rio guaranteeing it would stay open for another four years.
Energy Minister Megan Woods ruled out a similar deal as a result of the latest review, saying the government's position was that Rio would get no more financial assistance from taxpayers.
"This review is a commercial process by a commercial operator," she said.
Related Topics
Recent Stories
Dubai Police Marks International Workers' Day with 'Talabat' Riders
Sharjah Ruler inaugurates 15th annual Sharjah Children’s Reading Festival
Parineeti Chopra opens up about her decision to marry politician Raghav Chadha
PCB decides to set up training camp for national team ahead of England, Ireland ..
Virat Kohli's sweet birthday wish for Anushka Sharma
Interior Minister commends Pakistan Coast Guards
Pakistan women’s squad announced for England tour
Punjab CM Maryam inaugurates initiative of field hospitals
PM Shehbaz constitutes committee to investigate caretaker govt’s wheat import ..
Women T20I: Pakistan to face West Indies in fourth match tomorrow
Pak-UK 6th Regional Stabilization Conference underway at NDU, Islamabad
World Labor Day being observed today
More Stories From Business
-
SRB tax collection surges 29% to Rs 185.2 billion
11 hours ago -
WSSP, district admin to launch joint operation against water bills defaulters
13 hours ago -
Mega Cotton Seminar held in Bahawalpur
15 hours ago -
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 1 May 2024
18 hours ago -
Today Gold Rate in Pakistan 01 May 2024
18 hours ago -
Petrol prices slashed by Rs 5.45 per liter
1 day ago
-
Govt reduces petrol price by Rs5.45 per litre
1 day ago -
FBR issues Income Tax General Order to enforce return filing
1 day ago -
Planning minister reviews preparations for upcoming 13th JCC meeting, PM Shehbaz’s expected visit ..
1 day ago -
FBR issues Income Tax General Order to enforce return filing
1 day ago -
LCCI delegation visits Business Facilitation Center
1 day ago -
2-day Pak-International Poultry Expo begins
1 day ago