30 Oct 2014

Meridian sees more life in smelter

7:53 am on 30 October 2014

Meridian Energy says it is receiving expert advice that demand for aluminium is likely to outstrip supply over the next two years.

Meridian Energy chief executive Mark Binns.

Meridian Energy chief executive Mark Binns. Photo: RNZ

The signals are encouraging for the generator and retailer, which is locked into a deal to supply power to the Tiwai Point aluminium smelter near Bluff.

New Zealand Aluminium Smelters has a contract for electricity until 2030 which it can terminate from January 2017, provided it gives at least 15 months' notice.

But yesterday, Meridian's chief executive Mark Binns told investors it appears that market conditions for the Southland site are on the up.

Mr Binns said he is being told that the dynamics of the world's aluminium supply are changing.

The Tiwai Point smelter near Bluff.

The Tiwai Point smelter near Bluff. Photo: PHOTO NZ

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