Rio Tinto confirms Tiwai exit in December 2024

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Rio Tinto confirms Tiwai exit in December 2024
14 January 2021

Meridian Energy confirms that global mining giant Rio Tinto has accepted new contract terms offered by
Meridian, effective from today, 14 January 2021 and will now be continuing operations at the NZAS
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Tiwai Point Aluminium Smelter through to December 2024.
Meridian Chief Executive, Neal Barclay says, “We have worked hard to provide solutions that we believe
were of lasting value to the Smelter and acceptable to our shareholders. We’re pleased that Rio Tinto
has accepted this offer, which will now provide certainty for the Southland community.”
“As a company we have planned for the eventual exit of the Tiwai Smelter. We’re excited about the
opportunities that we have to accelerate decarbonisation, and we’re actively developing new growth
opportunities.”

Chief Executive Neal Barclay will host a teleconference on Monday 18 January 2021. Details of the call
will be provided later this week.
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NZAS is a joint venture between Rio Tinto (79.36%) and Sumitomo Chemical Company Limited (20.64%).
ENDS
Neal Barclay
Chief Executive
Meridian Energy Limited

For investor relations queries, please contact:
Owen Hackston
Investor Relations Manager
021 246 4772
For media queries, please contact:
Polly Atkins
Senior Communications Specialist

021 174 1715

NZAS EXTENDED EXIT
ANNOUNCEMENT
Meridian business update
14 JANUARY 2021

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Today’s announcement
Rio Tinto and Meridian Energy have reached agreement on the
future of the NZAS
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Tiwai Point aluminium smelter
An amended contract will take effect from 14 January 2021,
lasting through until 31 December 2024, with the following terms:
400MW with only terminal FM termination rights
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172MW with an NZAS 6 month termination right
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(available
from 1 January 2022)
Pricing is confidential
No electricity price linkages to aluminium pricing
No CPI-linked electricity price increases
Force majeure provisions reflect shortened contract term
Meridian has NZAS contract support from Contact
NZAS EXTENDED EXIT ANNOUNCEMENT
14 JANUARY 2021
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NZAS is a joint venture between Rio Tinto (79.36%) and Sumitomo
Chemical Company Limited (20.64%)
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In the event of a terminal force majeure event, both parties have a 3
month right to termination.
Meridian has a seven day termination right in the event any preceding
quarter’s consumption by NZAS is below minimum profile amounts.
These termination rights are similar to the previous version of the contract

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Timeline
NZAS EXTENDED EXIT ANNOUNCEMENT
Revised NZAS contract
400MW
172MW
14 JANUARY 2021
14Jan
2021
1 Jan
2022
1 Jan
2023
1 Jan
2024
31 Dec
2024
no termination right (except terminal force majeure)
NZAS termination right with 6 months notice (terminal FM also applies)
Meridian portfolio response
Swaption
CUWLP
NI battery
Process heat
IT infrastructure
Green hydrogen
final design
consenting
build
feasibility
Scoping and feasibility
Datagrid(60MW to 100MW), execution of other opportunities
scoping
procurement
execution
potential execution
develop further opportunities

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Clutha Upper Waitaki lines project
Thermal upgrade of the Cromwell–Twizel section of the Roxburgh–Twizel 220 kV line completed
Duplexing of the Roxburgh–Livingstone section of the Roxburgh–Islington 220 kV line scheduled through
2021 and Q1 2022
Project targeted for completion by May 2022
NZAS EXTENDED EXIT ANNOUNCEMENT
14 JANUARY 2021
Source: Transpower

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Summary
Today’s agreement now provides clarity for New Zealand
No change to Meridian’s dividend policy, noting flexibility of
payout
Half year results announcement on 24 February 2021 will
clarify interim dividend
Meridian will now reconsider balance sheet flexibility and the
timing of Harapakiwind farm build
Clutha Upper Waitaki transmission work will enable full export
out of Southland before Tiwai closure
NZAS EXTENDED EXIT ANNOUNCEMENT
14 JANUARY 2021
Solutions to operational constraints on the HVDC will come into the market before Tiwai closure
A December 2024 date for Tiwai closure allows Meridian to unlock future optionality on new electricity load
Feasibility of process heat, IT infrastructure and green hydrogen all appear positive

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Disclaimer
The information in this presentation was prepared by Meridian Energy with
due care and attention. However, the information is supplied in summary
form and is therefore not necessarily complete, and no representation is
made as to the accuracy, completeness or reliability of the information. In
addition, neither the company nor any of its directors, employees,
shareholders nor any other person shall have liability whatsoever to any
person for any loss (including, without limitation, arising from any fault or
negligence) arising from this presentation or any information supplied in
connection with it.
This presentation may contain forward-looking statements and projections.
These reflect Meridian’s current expectations, based on what it thinks are
reasonable assumptions. Meridian gives no warranty or representation as to
its future financial performance or any future matter. Except as required by
law or NZX or ASX listing rules, Meridian is not obliged to update this
presentation after its release, even if things change materially.
This presentation does not constitute financial advice. Further, this
presentation is not and should not be construed as an offer to sell or a
solicitation of an offer to buy Meridian Energy securities and may not be
relied upon in connection with any purchase of Meridian Energy securities.
This presentation contains a number of non-GAAP financial measures,
including Energy Margin, EBITDAF, Underlying NPAT and gearing. Because
they are not defined by GAAP or IFRS, Meridian's calculation of these
measures may differ from similarly titled measures presented by other
companies and they should not be considered in isolation from, or construed
as an alternative to, other financial measures determined in accordance with
GAAP. Although Meridian believes they provide useful information in
measuring the financial performance and condition of Meridian's business,
readers are cautioned not to place undue reliance on these non-GAAP
financial measures.
The information contained in this presentation should be considered in
conjunction with the company’s financial statements, which are available at:
www.meridianenergy.co.nz/investors
All currency amounts are in New Zealand dollars unless stated otherwise.
NZAS EXTENDED EXIT ANNOUNCEMENT
14 JANUARY 2021