Tiwai smelter coining it on decade-high metal price

Many expected the smelter to announce it was closing. Instead, it is currently highly profitable.

Tue, 25 May 2021

The Rio Tinto-controlled aluminium smelter at Tiwai Point is making some of its best money in a decade as high demand and constrained global supply send the metal to 10-year highs.Analysis by energy consultancy Enerlytica suggests smelting margins are heading well above 40% in coming months and a peak operating earnings margin of around 25% is in prospect.Profitability at the smelter is the highest it’s been since Enerlytica started its Tiwai-o-meter index eight years ago.The strong operating results reflect three things: a new low price...

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