26 | REGIONAL DEVELOPMENT Rio Tinto T T Karen Phelps Agreement signals brighter times ahead The increased investment at the smelter has already resulted in multiple improvement initiatives. Rio Tinto’s Tiwai Point aluminium smelter is delivering significant economic and community benefits across Southland following last year’s landmark 20-year energy supply agreement that secured its future until at least 2044. With certainty now established, the company has doubled its capital expenditure budget, launching numerous modernisation projects that are creating opportunities throughout the region’s economy. “We’ve doubled our capital expenditure budget on projects this year,” says Chris Blenkiron, NZAS chief executive. “This is an exciting time, not just for us on site, but for the wider Southland economy because of the amount of work that needs to be done.” The increased investment has already resulted in multiple improvement initiatives, including wharf strengthening, recladding the alumina storage shed, computer network upgrades and installation of welding robots. This enhanced spending has necessitated additional project personnel and created significant opportunities for local businesses and suppliers. Chris says these investments create “a ripple effect that boosts business growth and employment in the community,” with more than 2000 jobs indirectly attributed to the smelter’s ongoing operation. Rio Tinto has also strengthened its community investment through the Murihiku Rūnaka and NZAS/Rio Tinto Community Development Fund, which makes $500,000 available to support local initiatives. “Something that brings me great pride is the work we’re doing to help support Southland organisations and empower them to drive positive change through our community development fund,” says Chris. The fund has already supported 21 different projects across the region. Among the beneficiaries, Kiwi Harvest received $50,000 for a refrigerated truck that helps rescue 223,000 kilograms of food annually, while South Invercargill Urban Rejuvenation Charitable Trust installed 118 solar panels with its $98,000 grant. Meanwhile, Te Oho Mana Charitable Trust received funding for a programme connecting young people with their cultural identity. “These projects are each, in their own way, working to make Southland a place where we can all thrive,” explains Chris. “With long-term security established, we’re able to focus on creating lasting positive impacts.” The smelter is also exploring growth opportunities, including potential production increases that would boost regional exports by more than $100 million annually, while creating dozens of new jobs. The renewed confidence stems from last year’s new agreement with Meridian Energy, Contact Energy and Mercury, which was concluded after 18 months of complex negotiations. The deal guarantees the smelter the 572 megawatts required to power its three production lines until at least 2044. The smelter remains a cornerstone of the regional economy, injecting approximately $450 million into the national economy annually, including more than $100 million in wages to around 800 permanent employees and 200 full-time contractors. Proud to back NZAS — a business that shares our commitment to quality products and local impact. 35 Years. Trusted to Deliver. yuncaengineering.com Yunca Engineering. Built on Purpose. Specialists in All Auto Electrical Repairs & Servicing 4 V I C T O R I A A V E N U E , I NV E R C A R G I L L Phone 03 218 3200 admin@ajautoelectrical.net.nz Delkor battery specialist Caravan electrical and solar Air conditioning Auto electrical repairs and servicing. Proudly associated with NZAS since 2003
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