36 | REGIONAL DEVELOMENT Southland: Rio Tinto T T Richard Loader Tiwai big player in Southland economy Tiwai Point produces a range of different aluminium billets and blocks for the global markets, with about 90% of the product sold overseas, and the balance used in New Zealand. Key suppliers to the New Zealand Aluminium Smelters for over 35 years. There’s a whimsical quote, perhaps uttered in jest within the inner circles of the Tiwai aluminium smelter that goes along the lines of ‘No Tiwai - No TikTok’. Located halfway between Bluff and Invercargill at Tiwai Point, the smelter has been operating since 1971. New Zealand Aluminium Smelters (NZAS) is a JV between Rio Tinto, and Australian and London listed global metals company with an 80% shareholding, and Japanese owned Sumitomo Chemicals, with 20% shareholding, Rio Tinto is charged with operating the smelter, which produces a range of different aluminium billets and blocks for the global markets, with about 90% of the product sold overseas, and the balance used in New Zealand. It is also one of only two smelters in the world that produces ultra-high purity aluminium, highly sought after for very specific uses including computer memory disks. In a world where mobile devices are critical, unknown to most, the majority of cell phones carry a little bit of Tiwai in them — hence the quote. While much of the world’s aluminium smelters are fed by coal powered electricity, Tiwai is fed by renewable energy sources, producing about two tonnes of carbon for every one tonne of aluminium produced. The global average is about twelve/thirteen tonnes of carbon to every one tonne of aluminium produced. Required for everything from solar panels to wind generation to electric cars to lighter aircraft, aluminium is a key material in energy transition from fossil fuels to renewable sources. To achieve a decarbonised world we need aluminium, but to produce aluminium we need to produce carbon as well. Beyond the environmental aspects, Tiwai’s contribution to the Southland regional community is significant, both from an economic and social perspective. Employing over 800 full time staff, with another 200 to 300 contractors working on site depending on the time of year, the smelter is Southland’s largest employer, with the vast majority of the workforce drawn from Invercargill, some from Bluff and others from the wider Southland region. NZAS’s Director of External Affairs says that the smelter paid $357 million to New Zealand suppliers including $77 million to Southland suppliers. “A total of $96 million was paid in salaries and benefits to employees. Combined with the $77 million paid to Southland suppliers, that makes Tiwai the biggest contributor to the Southland economy. “Tiwai is also a major investor in the local community, supporting a lot of different community organisations and activities. “We have a relationship with Ngāi Tahu and last year signed a Memorandum of Understanding, which includes a $2 million community fund out to the end of 2024, when NZAS’s current contract ends. Round one of that fund has just closed with funding decisions now being made.” As would be expected in a highly technical and industrial processing plant, there is a diverse range of roles at Tiwai including classic trades such as electricians, welders, mechanics, operators and drivers. There are the skilled people who work on the reduction lines, carbon and casting and logistics, and there are the all-important environmental specialists, along with supporting roles. Simon says there are great career pathways for the right people, and many people have progressed through the system into technical and leadership roles. Acknowledging the need to bring new blood into the business, Simon says NZAS regularly works with local high school careers advisors, community organisations and attends Career Expos throughout the country, showcasing the type of roles, career and development opportunities and benefits offered at Rio Tinto and NZAS. “Currently we’re focussed on attracting a diverse group of people for entry level operators, trades and technical roles into the business. We offer apprenticeships in partnership with Southern Group Training Trust. “We offer a very generous superannuation scheme run by a private trustee, medical benefits, a short-term incentive scheme, employee retail discounts, flexible work arrangements, and a generous Rio Tinto share purchase scheme.” While Tiwai is a major New Zealand and Southland employer, it is also part of a global company with minerals and metals operations around the world and roles that are open to all employees, including Tiwai staff. “If you are starting off at Rio Tinto in Tiwai, the world could be your oyster. Quite a few folk have started their careers at Tiwai and have gone on to global roles within Rio Tinto.”
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