New Zealand Aluminium Smelters Limited

New Zealand Aluminium Smelter Limited (NZAS) is a joint venture operation owned by Pacific Aluminium (New Zealand) Limited (79.36 per cent) and Sumitomo Chemical Company (20.64 per cent). Pacific Aluminium (New Zealand) Limited, the managing partner, is a wholly owned subsidiary of Rio Tinto.

NZAS is New Zealand’s only aluminium smelter and is located on Tiwai Peninsula, across the harbour from the community of Bluff.

The smelter, located at Tiwai Point on the southern coast of the South Island, was opened in 1971 after a joint venture construction (50% Comalco, 25% Sumitomo Chemical Company and 25% Showa Denko KK). Comalco later purchased Showa Denko's share in April 1986. It is one of the 20 largest aluminium smelters in the world and, according to Rio Tinto Alcan, it provides NZ$3.65 billion worth of economic benefit to the New Zealand economy. It produces the world's highest purity primary (i.e. directly refined made from alumina ore) aluminium. The ore is mostly imported from Australia, while the finished product mostly goes to Japan.

The smelter currently consists of 3 lines of P69 technology cells, with 208 cells each (i.e. 624 total), and one line of 48 CD200 technology cells. In 2011 the smelter produced a record amount of aluminium, 354,030 saleable tonnes. The previous record production was 352,976 tonnes in 2007. In 2009, the smelter's production was 271,902 tonnes of aluminium and that year it employed approximately 750 full-time personnel and 120 contractors. The third P69 Line was built in the early 1980s as part of Muldoon government's "Think Big" projects.

The smelter uses up to 610MW of electricity which is mostly supplied by the hydroelectric Manapouri Power Station. The perceived reliability of power from Manapouri played a major role in the choice of building the aluminium smelter in Southland, with both the power plant and the smelter having been constructed as a joint project. The facility is the largest electricity consumer in New Zealand, and uses approximately one third of the total power of the South Island and 15% of the total power countrywide.

The electricity contract with Meridian Energy (and its predecessors) has long been criticised as being secret and effectively a tax-payer funded subsidy (or corporate welfare) for a large transnational corporation. In 2007 New Zealand Aluminium Smelters negotiated a new contract for electricity supply with Meridian Energy for the continuous supply of 572 megawatts for the period 2013 to 2030. Prior to the contract negotiation, New Zealand Aluminium Smelters had said that it could obtain electricity from a coal-fired station at less than 7 cents per kilowatt hour. In 2007, the new contract price was estimated to be 4.7 cents per kilowatt hour or one quarter of the price charged to the domestic consumer.

...
Wikipedia