NZAS and Meridian Energy Ltd sign power contract

1 October 2007

NZAS and Meridian Energy Ltd sign power contract

Today New Zealand Aluminium Smelters Limited (NZAS) and Meridian Energy Limited signed an eighteen year electricity price agreement for 572 MW of continuous consumption at the smelter. The agreement will take effect 1 January 2013 to 31 December 2030.

The new agreement provides NZAS with the basis for a secure and reliable power supply to meet the smelter’s operational requirements during this period. Meridian Energy Limited is New Zealand’s largest electricity generator and the only energy provider with certified carbon neutral electricity. Electricity from Meridian is primarily hydro.

Tom Campbell, Rio Tinto Aluminium’s managing director Smelting New Zealand and UK, said NZAS was pleased that an agreement has been reached with Meridian Energy.

“This contract provides a long-term future for our business which exports more than NZ$ 1 billion worth of aluminium annually and employs 787 fulltime employees and 133 contractors,” he said. He said NZAS is on a continual path to reduce its carbon footprint.

“NZAS already has the lowest level of greenhouse gas emissions of any smelter of similar technology worldwide, while producing the highest purity primary aluminium in the world. By continuing its relationship with Meridian, and primarily using renewable electricity, NZAS will maintain that position for a further generation”, Mr Campbell said. Meridian Energy Chief Executive Keith Turner says he is pleased the agreement has been reached and there is now clarity on the future of Meridian’s relationship with the smelter.

“This contract covers a very large quantity of base load - 100% continuous - electricity over a very long time, and the negotiations have been hard and tough. Both sides should be congratulated on reaching this outcome. “It is also important for the whole electricity industry to know well in advance so we can plan with confidence.”

NOTE: New Zealand Smelters Limited (NZAS) is jointly owned by Rio Tinto Aluminium (79.36 per cent) and the Sumitomo Chemical Company (20.64 per cent).

ENDS

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