Reuters reported that global miner Rio Tinto said production at its New Zealand Aluminium Smelters Ltd subsidiary was being cut by about 5% in response to high electricity prices.
Mr Ryan Cavanagh the smelter's general manager said in a statement that power consumption will be reduced by about 30 megawatts, resulting in a production cut of about 1,500 tonnes per month. He said that "The level and haste at which wholesale electricity prices have increased is very concerning, with prices at these levels last experienced during the 2008 winter crisis."
Electricity prices have risen sharply over the past two weeks, with the rise reportedly driven by concerns over a possible summer drought affecting hydro lake levels.
New Zealand Aluminium Smelters is 79.4% owned by Rio and 20.6% owned by Japan's Sumitomo Chemical Company.
