Meridian's Mark Binns said has extended that deadline to August 3, with all other terms of the agreement remaining unchanged.
Jenny Ruth talks about Tiwai Point on NBR Radio, and on demand on MyNBR Radio.
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See also: Smelter strikes 'poor-me' posture but no hints yet on whether it’s staying or closing
Meridian Energy [NZX:MEL] has granted the owners of the Tiwai Point aluminium smelter an extension of just over a month before they have to decide its future.
Under an agreement signed in August 2013, NZ Aluminium Smelter’s owners, Rio Tinto and Sumitomo, had until today to decide whether to continue as usual, reduce the amount of electricity it buys from Meridian or to close the plant altogether.
Meridian’s chief executive Mark Binns says in a statement his company has extended that deadline to August 3, with all other terms of the agreement remaining unchanged.
“NZAS has been in discussions with a number of parties, including Meridian, with respect to its electricity requirements at its Tiwai point smelter,” Mr Binns says.
“NZAS requires more time to fully analyse its options before making a decision,” he says.
“We think it is in all parties’ interests to ensure that a decision is based on the most complete information.”
Under the agreement, NZAS could decide to reduce the amount of electricity it buys from Meridian from 572 megawatts to 400 megawatts with 12 months' notice before December 31 this year. NZAS can also terminate its agreement with Meridian altogether by giving 12 months' notice from January 1, 2017.
In April, NZAS said it made an underlying profit of $56 million for calendar 2014, a turnaround from the previous year’s $18 million loss and the $49 million loss in 2012.
Rio Tinto owns nearly 80% of NZAS and Sumitomo owns the rest.
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