Rio Tinto says 'no current plans' to restart potline it closed during lockdown

The Tiwai Point aluminium smelter in Southland could close in mid-2021, putting thousands of jobs at risk. Photo / Mike Scott

Rio Tinto has denied claims it is preparing to reopen a small potline at the Tiwai Point aluminium which was closed when the country was in lockdown.

Earlier the Herald reported that contractors had been told that the smelter was preparing to reopen potline four in September.

But a spokeswoman said on Friday that there are "no current plans" for the potline to be reopened.

Back in March as New Zealand was in lockdown due to Covid-19, Rio Tinto exercised its option to close potline four, part of a plan to reduce contact between staff, for up to six months.

Smaller than the other three potlines at the smelter, the upgraded potline four was officially reopened by Prime Minister Jacinda Ardern in December 2019.

Less than a month ago, Rio Tinto announced that it had terminated its contract with Meridian as part of a plan to wind down operations and close the Tiwai Point smelter in 2021.

The news came months after Rio Tinto had signalled that it would announce the result of a strategic review.

While the news was immediately met with resignation by the Government, this week there were further hints that the decision may not be final.

According to a source, Alf Barrios, the chief executive of Rio Tinto's aluminium business, gave an address to staff at Tiwai Point by videolink this week, during which he indicated the final decision on the future of the smelter would be announced in four to six weeks.

E Tu organiser Joe Gallagher said he was not aware of the decision date, but understood that the "drop dead date" for a decision on the smelter's future was December 31.

"I'd like to think some common sense comes into play before Christmas, and I'd think there's still some room before Christmas to turn it around."