Rio Tinto’s Tomago aluminium smelter warns of output cut in face of rising power prices

Rio Tinto subsidiary Tomago Aluminium has warned that it could be forced to cut production by 5% and shed jobs if immediate action is not taken to lower electricity prices.

Australia-based Tomago faces substantial economic risk after wholesale electricity prices have risen to excessive and unsustainable levels, cfo Steve McIntyre said in a July 12 submission to competition watchdog Australian Competition & Consumer Commission’s inquiry into retail electricity supply and pricing.

“In the absence of immediate action to reduce electricity prices in New South Wales, Tomago may be required to curtail up to 5% of its production at the smelter. This has already occurred at other aluminium smelters, such as the Boyne Smelter in Gladstone where a significant number of jobs were lost following curtailment of part of the load in March this year,” McIntyre said....

Published

Vivian Teo

July 18, 2017

10:32 GMT

Singapore