SOE Minister notes Meridian comments

State Owned Enterprises Minister Tony Ryall has noted comments this morning by Meridian Energy regarding negotiations over its electricity contract with Pacific Aluminium.

“The negotiations have been ongoing for about nine months, following Meridian’s previous public announcement” Mr Ryall says. “Pacific Aluminium has recently been engaged in similar exercises with its Australian smelters.

“The positions of Meridian and Pacific Aluminium are reasonably close in terms of the short to medium term electricity price, but they remain well apart in the longer term.

“With this in mind, the Government has been in contact with Pacific Aluminium’s international parent company Rio Tinto this week to discuss helping to bridge the gap in their positions over the short to medium term, if this could be of assistance in concluding an agreement. “

“In the meantime, we understand Meridian’s existing contract with Pacific Aluminium remains in place at least until 1 January 2016 with significant financial and other obligations beyond that.”

“As we’ve said previously, all relevant information – including about the smelter electricity contract – will be reflected in the Mighty River Power offer document which is currently being finalised.”
ends

© Scoop Media