Originally Posted by
Beagle
Sorry I can't find the link to the article yesterday, I did try. The nub of the issue is that Rio believe the $66m they pay in transmission costs each year, (which absolutely dwarfed their net profit) is more than than the total capital value of the transmission assets used. I have no idea as to the validity of their claim but its not far as the crow flies from Manapouri to Invercargill and if there is substance to their claim that they are effectively paying more than the capital value of the asset every single year just to use it, then obviously that's a completely absurd situation. Rio went on to say in that article that their transmission charges are ten times higher than the average for other smelters around the world. On the face of it you have to wonder a bit if the transmission pricing review, (which will grant them as I understand it, about $11-12m relief per annum next year and a similar amount again on top of that per annum from 2024, went far enough and was fair ?