By Lucy Craymer
WELLINGTON--Rio Tinto PLC (RIO) has declined the New Zealand
government's help in negotiations over an energy supply contract
between Rio Tinto-controlled Pacific Aluminium and electricity
provider Meridian Energy Ltd., the minister for state-owned
enterprises, Tony Ryall, said Tuesday.
"Over the weekend the multi-national mining corporation Rio
Tinto said it appreciated the government's intentions but was
unable to accept the (government's) offer" to help bridge the gap
in talks between Pacific Aluminium, which owns nearly 80% of the
country's only aluminum smelter, and Meridian, Mr. Ryall said in a
statement. He added that Pacific Aluminium and Meridian have both
indicated a willingness to continue discussions.
Pacific Aluminium has been in talks with Meridian for nine
months as it looks to negotiate a better price deal on an existing
supply contract for the Tiwai Point aluminum smelter as aluminum
prices have tumbled, making the plant uneconomic.
Last week Meridian said it doubted a deal would be reached
because of the big price gap between the rate at which it was
willing to supply power to the plant, New Zealand Aluminium
Smelters Ltd., and the amount the company was willing to pay.
Pacific Aluminium was unavailable for comment.
Write to Lucy Craymer at lucy.craymer@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
