Rio Tinto (ASX:RIO) - Outgoing CEO, Jean Sébastien Jacques
Outgoing CEO, Jean Sébastien Jacques
Source: Mining.com
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  • Global Mining giant Rio Tinto (RIO) has accepted new contract terms offered by Meridian Energy (MEZ) to continue operations at the NZAS Tiwai Point Aluminium Smelter
  • The amended contract won’t take effect until December 31, 2024, with the pricing remaining confidential
  • The new agreement will not affect Meridian’s dividend policy, and half-year results will be announced on February 24, 2021, to clarify the interim dividend
  •  Meridian Energy is down a slight 0.41 per cent, trading at $7.33 per share

Rio Tinto (RIO) has accepted new contract terms offered by Meridian Energy (MEZ) to continue operations at Tiwai, effective from today.

Global mining giant Rio Tinto will now continue operations at the NZAS Tiwai Point Aluminium Smelter, a joint venture between Rio Tinto and Sumitomo Chemical Company, through to December 2024.   

The amended contract won’t take effect until December 31, 2024, with the pricing remaining confidential.  

“We have worked hard to provide solutions that we believe were of lasting value to the Smelter and acceptable to our shareholders. We’re pleased that Rio Tinto has accepted this offer, which will now provide certainty for the Southland community,” said Meridian Chief Executive, Neal Barclay.

“As a company, we have planned for the eventual exit of the Tiwai Smelter. We’re excited about the opportunities that we have to accelerate decarbonisation, and we’re actively developing new growth opportunities.”

The new 2024 date for the Tiwai closure will allow Meridian to unlock future optionality on new electric load, with the feasibility to process heat, IT infrastructure and green hydrogen all appearing positive.

The new agreement will not affect Meridian’s dividend policy, and half-year results will be announced on February 24, 2021, to clarify the interim dividend.

Meridian Energy is down a slight 0.41 per cent, trading at $7.33 per share at 10:17 am AEDT.

MEZ by the numbers
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