Power shares

[Beagle]

Aluminium on a downtrend since 2018 from $2500 to a low today of $1530

Yeah, pretty sure it was $1,700 when they started the review and they were complaining it had come down from $2000.
$1,530 and falling looks pretty ominous to me.

^^^Posted just 5 days ago. According to CNBC a few minutes ago currently trading at just $1,478.00

[Tomtom]

Plus the 2,260 jobs created indirectly.
Tiwai uses enough electricity to power 776,000 homes!

Input prices will likely fall commensurately over time however. Given the prevailing market conditions it's about what market share they want in 5 or 10 years, it's a strategic move.

[Nasi Goreng]

But doesn’t this aluminium stuff get exported? And what’s been happening to the kiwi dollar?

[Joshuatree]

Input prices will likely fall commensurately over time however. Given the prevailing market conditions it's about what market share they want in 5 or 10 years, it's a strategic move.

What strategic move is that Tom?

[Panda-NZ-]

Maybe the power companies can come up with their own subsidy package to help Tiwai out

[Simsee]

I wonder when the smelter owners will make the final decision to stay or go. Leaving their workers worrying about it for months is not the sign of a good employer.

[macduffy]

I wonder when the smelter owners will make the final decision to stay or go. Leaving their workers worrying about it for months is not the sign of a good employer.

No, it's not. I would think though that the smelter employees would be used to this regular courting ritual!

[Oliver Mander]

Can't imagine that Covid-19 will help in achieving a "keep open" outcome...

[Joshuatree]

Maybe next few days ,as i said their qrtly last year was on th e 16th april.
Meanwhile a perfect negative storm for Rio with the IRD after them now as well as 5 year low in All prices and their aus smelters also running at a loss

ATO escalates aluminium smelter dispute with Rio Tinto
Peter KerResources reporter
Apr 8, 2020 – 11.04am

The Australian Taxation Office has escalated its transfer pricing probe into Rio Tinto's aluminium division, further complicating talks between the miner and the federal government over a rescue package for Rio's three loss-making Australian smelters.
The Australian Financial Review revealed in February that a probe was underway into Rio's aluminium division, and Rio confirmed on Wednesday that the probe had escalated to a formal "amended assessment" in March.
The ATO believes Rio's Australian subsidiaries did not charge an appropriate price for the aluminium they sold to Rio's controversial Singapore marketing hub between 2010 and 2016.
The ATO has told Rio it must pay $86.1 million of unpaid taxes over the aluminium matter, which is separate to Rio's long-running $447 million dispute with the ATO over the transfer pricing of Australian iron ore.
Alcoa says Australia's power prices highest 'on the planet'
Rio said on Wednesday it would fight the ATO's aluminium claim, saying the issues in dispute were similar to those in the iron ore transfer pricing case.


''In March 2020, the ATO issued amended assessments to our company for the 2010 through 2016 calendar years in relation to the pricing of the sale of aluminium between Australia and our Singapore commercial centre," said Rio in a statement.
''We intend to object to the ATO assessments, which will give rise to an independent ATO review of the position.
''The amended assessments for both the iron ore and aluminium matters do not relate to any tax avoidance schemes as confirmed by the Australian Taxation Office, and no penalties have been levied by the Australian Taxation Office.
''We are committed to paying the right amount of tax due in all countries in which we operate, and consider the pricing of our iron ore and aluminium transactions to be in accordance with the OECD guidelines and Australian and Singapore domestic tax laws.''

The ATO has also launched a transfer pricing probe into the Australian bauxite, alumina and aluminium assets of US giant Alcoa and its local partner Alumina Limited.
As recently as February that probe had not yet escalated to become a formalised "amended assessment".
The timing of the ATO's probes is particularly inconvenient for the aluminium producers, who have approached state and federal governments over the past year seeking help to keep the loss-making aluminium smelters open.
Rio Tinto's Australasian smelters and refineries collectively lost $US137 million ($232 million) in 2019, and they appear unlikely to do better this year given aluminium prices have slumped since the coronavirus outbreak.
Rio operates smelters in Tasmania, Queensland, New South Wales and on the south island of New Zealand.
Loss-making smelters plead for exemption from virus shutdowns
Alcoa and Alumina Limited's Portland smelter in Victoria lost $US36.4 million before interest and tax in 2019, and has lost a total of $US136.9 million over the past three years, despite receiving more than $200 million in government support subsidies.
Rio's continuing fight against the ATO over the iron ore dispute is at odds with the approach taken by BHP, which settled with the ATO over an almost identical dispute in November 2018.
The aluminium revelations were included in Rio's "taxes paid" report, in which the miner said it paid $US4.24 billion ($6.91 billion) in corporate income tax in Australia in 2019.
Once royalties and payroll taxes were included, Rio said it paid $US6.21 billion ($10.12 billion) to Australian governments in the year.

[Joshuatree]

London April the 8th
"The Report sets out our ambition to reach net zero greenhouse gas emissions by 2050. And our new targets to achieve a 30% reduction in emissions intensity, and a 15% reduction in absolute emissions, by 2030.
To deliver these targets, we will spend approximately $1 billion over five years on climate-related projects, and research and development.
As well as working hard to reduce our own emissions, we are also working in partnership with our customers and others to reduce greenhouse gas emissions throughout the mining and metals value chain, from mine to end- product.
Including ‘hard to abate’ sectors, such as aluminium smelting, steel-making and shipping, where there are currently no commercially viable pathways to decarbonisation."

Rio Tinto plc 2020 Shareholder Conference Call - Speech, Simon Thompsonpdf, 119.18 KB
And in the conference and call recording RIO LOOK to be taking environmental issues very seriously and are reducing their carbon footprint. They are optimistic about Aluminium long term with increasing uses in the car industry for one.They have adopted Climate action 100 plus with carbon reduction goal and new low carbon tech initiatives to become net zero steel and aluminium producers. This makes hydro power based Tiwai a valuable asset going forward ( especially with its high purity) as it will help with the environmental commitment for the company. also mentioning that with the chinese restructure of aluminium production will rebalnce the supply demand situ. Most of the questions were about environmental issues. Makes me more optimistic about Tiwai stayingfor the longer term.
Rio Tinto plc 2020 Shareholder Conference Call - Speech, Simon Thompsonpdf, 119.18 KB