By Stephen Nakrosis


New Zealand Aluminium Smelters said it has signed a series of 20-year electricity arrangements to provide power for the Tiwai Point aluminium smelter.

Rio Tinto is the parent organization of New Zealand Aluminium Smelters.

Contracts were signed with Meridian Energy, Contact Energy and Mercury NZ to provide an aggregate of 572 megawatts of electricity to meet the smelter's full electricity needs. Renewable generation sources will be included in the power mix, the companies said.

Rio Tinto Aluminium Chief Executive Jerome Pecresse said the long-term future of the Tiwai Point smelter has been secured with these agreements. New Zealand Aluminium Smelters contributes about NZ$400 million to the Southland economy annually, Rio Tinto said.

Rio Tinto also said it agreed to acquire Sumitomo Chemical's 20.64% interest in NZAS for an undisclosed price. After the close of the deal, New Zealand Aluminium Smelters will be 100% owned by Rio Tinto, the company said.

Rio Tinto said it also agreed to acquire Sumitomo Chemical's 2.46% interest in Boyne Smelters.


Write to Stephen Nakrosis at stephen.nakrosis@wsj.com


(END) Dow Jones Newswires

05-30-24 1809ET