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05. May 2008

New Zealand - Power prices hit smelter

New Zealand Aluminium Smelters is cutting production at its Tiwai Point smelter by about 5 per cent as a result of rising power prices.

Hydro lake levels at around 60 per cent of average storage, significantly lower than normal because of drought, are pushing up wholesale power prices.

The smelter's reduction of 30 megawatts of power demand corresponded to a cut in aluminium production of about 1400 tonnes a month, the company said.

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