Fears Rio will shut local aluminium smelters – The Australian Financial Review

As you would expect, we are in ongoing discussions with energy intensive industries about the role the government is playing to bring down prices and ensure reliability.”
Wholesale electricity prices in Australia are the lowest they have been since 2015 and the federal government has made it clear it expects retailers to pass on savings.
Rio blamed high energy costs and a bleak lookout for the aluminium industry after setting a date for the closure of New Zealand Aluminium Smelters.
The Rio exit sent shockwaves through New Zealand energy stocks and sparked warnings of higher electricity charges across the country, where the smelter uses about 13 per cent of overall supply. Prices are expected to rise because the removal of such a large customer makes the supply of energy less cost-effective for providers.
The hydroelectric-powered NZAS smelter at Tiwai Point in New Zealand employs about 1000 people and is estimated to indirectly support an additional 1600 jobs.
There are growing doubts about the future of smelters in Australia, which chief executive Jean-Sebastien Jacques warned last year were also on “very thin ice”.
The Alcoa-backed Portland aluminium smelter in Victoria is only just surviving on government-funded life support.
ACC executive director Marghanita Johnson said some of the highest energy costs in the world were crippling the industry in Australia, while high transmission costs had been a big factor in New Zealand.
This is a reminder that for aluminium smelters everywhere it is the delivered cost of energy that counts, she said.
What we have seen in New Zealand is that it isnt just the cost of energy but the transmission cost that have been part of the problem.
Ms Johnson said aluminium smelters in Australia were like other manufacturers in that they needed well priced and reliable electricity.
The decision in New Zealand shows that even with stable electricity, and hydro electricity at that, it is just not enough if the price isnt right, she said.
Australian electricity prices are currently some of the most expensive in the world and at those prices we are seeing the risk of the same things

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