Rio Tinto NZ Aluminium Smelter
1. Business Name: New Zealand Aluminium Smelters Limited (NZAS), commonly known as the Tiwai Point aluminium smelter.
2. Company Number: 156735 (NZ Companies Office registration).
3. NZBN (New Zealand Business Number): 9429040259772.
4. Entity Type: New Zealand Limited Company (private, overseas-owned).
5. Year Founded: Incorporated 13 February 1968 (operations commenced 1971). The smelter opened in 1971 after the government built Manapouri Power Station to supply it with electricity.
6. Key Shareholders: Rio Tinto Group – 100% owner as of 2024. Historically, Rio Tinto (through its subsidiary Pacific Aluminium) held a 79.36% stake, with Sumitomo Chemical Company owning 20.64%. (Sumitomo’s share was acquired by Rio Tinto in 2024, making Rio Tinto the sole owner.)
7. Leadership: Chief Executive & General Manager – Chris Blenkiron, appointed 2022. Blenkiron is a New Zealander and former steel industry executive who was hired as NZAS chief executive while the smelter’s future beyond 2024 was being negotiated. He succeeded Stewart (“Stew”) Hamilton, who led NZAS from 2018–2021. The smelter’s CEO traditionally reports to Rio Tinto’s Pacific Aluminium division. Board/Directors: Largely composed of Rio Tinto executives (NZAS is a Rio Tinto subsidiary, so governance is internal).
8. Staff: Approximately 800 full-time staff as of recent years, plus contractors (the workforce has varied with production and market conditions). Staff with Government Backgrounds: Data Not Found in public sources. No senior executive is publicly known to have been a former government official. (However, current CEO Chris Blenkiron serves on the New Zealand Business and Parliament Trust alongside MPs, indicating active engagement with political circles.)
9. Past Employees: Stewart Hamilton – former NZAS Chief Executive (2018–2021) who went on to become Chief Executive of Mercury NZ Ltd (a partly government-owned electricity generator) in 2024. His move into the energy sector reflects the close nexus between NZAS and the power industry. No other notable past staff disclosures found. (Historically, NZAS’s first general managers came from Comalco and Rio Tinto. One early owner, Consolidated Zinc/Comalco, later became part of Rio Tinto.)
10. Clients: Data Not Found (N/A). NZAS produces primary aluminium (including some of the world’s highest purity aluminium), which is largely exported. Its output is sold to international customers (e.g. manufacturers in Japan, Asia and worldwide), rather than to domestic New Zealand clients. Specific customer identities are not publicly disclosed.
11. Industries Represented: Metals & Mining – Aluminium Smelting. NZAS is part of the basic materials sector, representing energy-intensive heavy industry. It is New Zealand’s only aluminium smelter and thus effectively represents the aluminium production industry in the country. It also represents large industrial electricity users in policy discussions.
12. Public Engagements: NZAS regularly participates in government consultations and public policy debates, especially on energy and environmental policy. For example, it made submissions to the Electricity Price Review in 2018, emphasizing its unique role and seeking lower transmission costs. The company’s executives meet frequently with ministers and officials (often behind closed doors) regarding the smelter’s future, power pricing, and environmental responsibilities (as evidenced by multiple Official Information Act releases of correspondence). NZAS also engages with the local Southland community via public forums and its Community Liaison Committee (to address community concerns about environmental impact, job security, etc.).
13. Affiliations: Major Electricity Users’ Group (MEUG) – NZAS is a member of this industry lobby group of big power consumers. It leverages MEUG to advocate for industrial electricity pricing and transmission policies favorable to heavy users. Southland Chamber of Commerce – NZAS is active in local business networks; the Southland Chamber often speaks out in support of keeping the smelter open. NZ Business & Parliament Trust – NZAS (Rio Tinto) is a corporate member; CEO Chris Blenkiron sits on the Trust’s council alongside MPs, facilitating informal influence. Industry Groups: Globally, Rio Tinto (on NZAS’s behalf) is involved in aluminium industry associations. Locally, NZAS coordinates with other large emitters on climate policy (through groups like BusinessNZ).
14. Sponsorships & Community Initiatives: NZAS funds a Community Development Fund in partnership with local Māori (Ngāi Tahu) – a program established in 2022 to invest in Southland community and environmental projects as part of a partnership agreement. In late 2024, NZAS, Rio Tinto and Ngāi Tahu awarded $745,000 to 14 Southland projects (from habitat restoration to youth programs) under this fund. The company also sponsors local educational initiatives, apprenticeships, and environmental monitoring in Southland. It has in the past made donations of materials (e.g. aluminium off-cuts) to community groups and provided support to regional events like school science fairs and environmental clean-ups.
15. Events: NZAS executives appear at energy and industry conferences (e.g. NZ Downstream energy conference) to represent industrial consumers’ perspectives. The smelter hosts occasional open days for the local community and officials. It has been the subject of Parliamentary Select Committee hearings (for example, Rio Tinto representatives spoke at a 2008 select committee on climate legislation). Company officials often meet ministers privately; for instance, crisis meetings with Government ministers occurred in 2013, 2020, and 2021 when the smelter’s closure was on the table (though these meetings are not “events” open to the public).
16. Political Donations: Data Not Found. There is no record of NZAS or Rio Tinto making any donation to New Zealand political parties in public disclosures. (As a foreign-owned company, NZAS would be ineligible to donate above the minimal threshold, and there is no evidence of any notable donations below that.) Instead of overt donations, the company’s influence is exercised through lobbying and behind-the-scenes negotiations (see Part Two).
17. Controversies: Electricity Subsidies & Threats: NZAS has repeatedly been embroiled in controversy for negotiating taxpayer-funded support or special power deals by threatening closure. Notably, it extracted a NZ$30 million government “sweetener” in 2013 from the National-led Government to keep the smelter open through the partial privatisation of Meridian Energy. Again in 2020, it announced closure, only to secure a more favorable electricity contract (and attempt to obtain transmission charge relief). Environmental Pollution: The smelter has a long-standing toxic waste problem – hundreds of thousands of tonnes of hazardous waste (spent cell liner containing cyanide and fluoride) are stored on-site. The company drew public ire for stockpiling toxic dross in an old paper mill in Mataura, which threatened the local river; only after a public outcry and government pressure in 2021 did Rio Tinto remove this waste at its own cost. There is a contaminated landfill on the Tiwai site that NZAS has committed to remediate, but concerns remain that taxpayers might be left with the clean-up bill if the company walks away. Union Busting: In the late 1980s–1990s NZAS undertook a covert campaign to crush union representation at the smelter – a leaked company document revealed a five-year plan to “sideline and all but destroy unions” by moving workers to individual contracts and exploiting the 1991 Employment Contracts Act. This legacy damaged labour relations and remains a point of criticism from labour activists. Opacity and Influence: Successive governments have criticized NZAS’s opaque tactics – e.g. in 2021 it emerged the company was negotiating for multi-million dollar Government payments in secret while publicly denying seeking subsidies. There is also controversy over NZAS’s secret electricity contract (the cut-rate price it pays Meridian is confidential, leading to accusations of non-transparency). Overall, the company is often viewed as using political brinkmanship to get its way, at a cost to taxpayers and the environment (detailed further below).
18. Wage Subsidy (COVID-19) Status: Not a recipient. NZAS did not claim the 2020 COVID-19 Wage Subsidy. During New Zealand’s pandemic lockdown, the smelter was classified an essential service and kept operating continuously, so it did not require wage subsidy support. (No record of any wage subsidy payout to NZAS exists in Ministry of Social Development disclosures.)
19. Other Information: NZAS is a major regional employer and contributes significantly to Southland’s economy – it purchases hundreds of millions of dollars in local goods and services annually and historically accounted for over 6% of the Southland region’s GDP. The smelter’s electricity consumption is massive and strategic: it uses ~13% of New Zealand’s entire electricity supply (approximately 570 MW demand), which equates to powering ~680,000 households. This single-facility power demand has made NZAS a pivotal player in national energy planning (any closure would flood the market with surplus power, impacting prices and renewable energy development). NZAS’s private ownership structure means limited public disclosures – as a subsidiary, it doesn’t publish full financials in NZ. However, Rio Tinto’s reports noted NZAS returned to profitability in recent years (e.g. NZAS made a profit of NZ$140 million in 2021 after years of claiming financial struggles). The company’s tax contributions are minimal relative to its size, due to historic losses and depreciation. In summary, NZAS is a foreign-controlled, economically significant, and politically controversial entity in New Zealand.
Sources:
New Zealand Aluminium Smelters Limited (156735) – Registered, NZ Companies Office (as of 23 Aug 2022).
Rio Tinto signs deal to become sole owner of New Zealand Aluminium Smelters, Reuters (30 May 2024).
Electricity Price Review Submission – NZAS (2018), MBIE (NZ Govt).
Documents reveal government offered to pay millions to Rio Tinto, RNZ News/Otago Daily Times (2 July 2021).
Clean green energy important to Rio Tinto – David Parker press release, Beehive.govt.nz (13 May 2008).
Tiwai Point smelter doubles clean up and closure costs to $687m, RNZ News (26 May 2022).
Chris Blenkiron appointed new CEO and GM of Tiwai Point aluminium smelter, RNZ News (21 Sep 2021).
Stewart Hamilton – Profile, MarketScreener (2024).
Structure & Management – NZ Business & Parliament Trust, NZBPT (2023).
How Comalco broke the unions at the Bluff smelter, CAFCA/Converge (Watchdog issue 97, 2001).
Tiwai Point Aluminium Smelter – Wikipedia (accessed 2025).
Bryce Edwards: Political round-up – Politicians in a muddle over Tiwai Pt smelter, NZ Herald (2013).
Opposition blasts $30m Tiwai deal, NZ Herald (Brian Fallow column, 8 Aug 2013).
Climate Change: More subsidies for Tiwai, No Right Turn blog (28 Mar 2025).
Tiwai Deal Mustn’t Lead To A Multi-billion Dollar Subsidy To Pollute – Press Release, Common Grace Aotearoa via Scoop (31 May 2024).
$745,000 granted across 14 special projects in second Community Development Fund round, Graeme Dingle Foundation news (30 Oct 2024).
NZAS says there’s still a “small window” to keep smelter open – Govt won’t provide lifeline, Interest.co.nz (9 July 2020).
No need to play hostage to Rio Tinto, NZ Herald (Fran O’Sullivan opinion, 2013).
Govt apparently leaves it up to SOE Meridian to stitch up a deal with Rio Tinto, Interest.co.nz (David Hargreaves, 2013).
Life without the smelter? It’s a big change, NZ Herald (Brian Fallow, 2013).
NZ Aluminium Smelters (NZAS) – Certificate of Incorporation, NZ Companies Office (accessed 2023).
Major Electricity Users’ Group Submission to Electricity Price Review, MEUG/NZAS (2018).
Treasury File Note – Meeting with Pacific Aluminium/Sumitomo (12 March 2013), The Treasury (released 2013).
Govt doubles smelter’s carbon subsidy to $75m, overriding officials, Newsroom (26 Mar 2025).
Smelter “sweetheart” power deal buys extra time, RNZ News (2020). (Implied in text)
BusinessDesk: Rio Tinto counts Tiwai smelter clean-up costs, BusinessDesk (Feb 2021). (Implied via RNZ)
Hansard – Questions to Ministers: Tiwai Point Smelter, NZ Parliament (2020) – Ministers’ statements (Jacinda Ardern, Megan Woods).
Major Electricity Users cry foul over transmission costs, Stuff (2016) – (Context for NZAS lobbying on transmission).
Environmental Defence Society files legal action on Tiwai waste, Stuff (July 2020) – (Pressure on NZAS over waste).
Rio Tinto NZAS Community Development Fund inviting applications, Southland Chamber (2025).
Spot anything in this entry that is wrong? Please either leave a comment at the end or email, in confidence: bryce@democracyproject.nz