Rio Tinto’s majority-owned aluminum smelter in Tiwai Point, New Zealand was expected to keep operating until 2039, but it will need to pay more for electricity during that period.

The current electricity contract will continue till December 31, 2024.

Rio Tinto has been continuously negotiating with major electricity companies on power supply issues since this year.

The aluminum smelter should pay 4.7 cents per kWh if aluminum prices are at US$2,600 per ton or lower, and the power price would rise by 0.2 cents per kWh for every US$100 increase in aluminum prices over the specified level.