Smelter Closures in New Zealand will be delayed by 3 to 5 years

New Zealand Prime Minister Ardern says her government will negotiate to extend the operations of Rio Tinto's (NYSE: RIO) Tiwai Point aluminum smelter for 3-5 years if it comes back to power in the upcoming elections. The proposed closure is a hot election issue as it puts thousands of jobs at risk at a time when New Zealand is hit by the economic impact of the COVID-19 problem; the hut consumes ~ 12% of the country's electricity. Negotiations would focus on preserving the hut's workforce, redeveloping the hut's location, and lowering the price it pays to transmit electricity from the nearby Manapouri Dam, says Ardern, who leads the polls. Rio Tinto has stated that New Zealand's only aluminum smelter is not economically viable and plans to close it in August 2021.