Announcement

GENERAL: MEL: Smelter to reduce consumption during COVID-19 lockdown 11:36am 
MEL
31/03/2020 11:36
GENERAL
NOT PRICE SENSITIVE
REL: 1136 HRS Meridian Energy Limited (NS)

GENERAL: MEL: Smelter to reduce consumption during COVID-19 lockdown

Meridian Energy confirmed today that Tiwai Point smelter in Southland is
looking to exercise its right to reduce consumption for up to six months
under its 50MW Potline 4 contract.

Meridian's Chief Executive Neal Barclay said the smelter is looking at ways
to manage operations as part of their COVID-19 plan and discussions around
reducing consumption are ongoing.

"Reducing consumption on the fourth potline provides the smelter with more
flexibility to manage the safety of its on-site staff as it manages
operations through the COVID outbreak," says Barclay. "NZAS has advised us
this possible reduction is not related to the wider Strategic Review
currently being conducted by the smelter's owner Rio Tinto," adds Barclay.

Meridian brokered a separate contract with the smelter in May 2018 that
provides a price for an additional 50 MWh per hour (438 gigawatt hours per
year) at Tiwai Point in Southland. The contract, underwritten by Meridian and
supported by contracts with Contact, Genesis and Mercury, runs until December
2022. The contract enabled the Tiwai Point smelter to recommission its fourth
potline in December 2018 after a six-year shutdown, expanding the use of
renewable energy and increasing production.

Meridian's main electricity agreement with NZAS that provides price certainty
for up to 572 MWh per hour (5,011 gigawatt hours per year) of electricity to
2030.

In October 2019 the smelter's owner Rio Tinto, initiated a Strategic Review
of its New Zealand operations. The review is currently considering all
options for the future of the smelter, including closure. Rio Tinto had
advised Meridian that it will provide the market with an update on its review
by the end of the first quarter in 2020.
End CA:00350981 For:MEL Type:GENERAL Time:2020-03-31 11:36:29

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