Internationally, matters sank to a new low when Rio destroyed Juukan Gorge in Western Australia - home of culturally significant caves over 60,000 years old - in 2020.
Blenkiron, in a speech to the transtasman Business Circle on Friday, went over the company’s reputational issues at length.
He said the Tiwai Point plant, situated immediately across the harbour from Bluff, had tended to be insulated because of its remoteness.
“So we focus on making aluminium – and rightly so. However it appears that we are equally efficient at making aluminium as we are at making headlines,” he said.
Headlines like “Another 75,000 tonnes of toxic waste revealed at Tiwai Point” and “How one back room power deal cost you up to $200 a year” had dogged the company.
Blenkiron, who was appointed early this year, lives in Invercargill and travels the country talking to business leaders, community members, politicians, ministries, iwi leaders and customers.
“These discussions have largely echoed those headlines, and it became clear to me that we were brilliant at manufacturing aluminium, but our social license had become tatty.
“New Zealanders felt short-changed after feeling we had engaged in brinkmanship resulting in everyone paying more for power because of us.”
Blenkiron said NZAS scored an “own goal” when it took too long to move the hazardous waste - Ouvea premix - which had been stored in the Southland community.
Following Juukan Gorge, there had been a global shift in focus at Rio and determination to change its approach.
“Combined with the potential future that’s on the table for Tiwai and Rio in NZ – for me is something worth fighting like an alley cat for,” he said.
He said the 1000 or so jobs, plus the 2500 further supported by the smelter, may be for a long time.
Around 10 per cent of Tiwai’s production is used domestically and the rest is exported to Rio’s partners.
Aluminium is recyclable - about 75 per cent of aluminium ever made is still in use today.
It also requires vast amounts of electricity to make, and Tiwai uses about 12 per cent of the country’s electricity.
Aluminium produced at Tiwai is among the least carbon-intensive in the world.
“Right now – all eyes are on how the world energy sector is grappling with this transition.
“And it’s a fact that to electrify and rebuild the fossil fuel burning plants the world needs lots of aluminium.
“Aluminium is essential for solar panels, electric vehicles, wind turbines and even those transmission lines that we occasionally say we pay a bit much for.”
Blenkiron said the smelter can dial back production to help the grid during a drought or in times of peak demand.
He said the next two years would be critical for Tiwai.
“I’ve read headlines of a sweetheart deal and promises that aren’t to be trusted.
“That’s an old narrative and not squared away with what I know, what I see or in fact what we are doing.
“We are cleaning up, and will do whether we make aluminium beyond 2024 or not.
“We’re listening, learning, rebuilding trust and repairing our tattered social license I spoke on.”
Blenkiron told the Herald after his speech that feedback about the new approach had been favourable but some had remained sceptical.
“Broadly, it’s been welcomed.
“The feedback that I have been hearing is that it’s been a breath of fresh air and that people are welcoming the engagement - from the generators through to the community.”
As it stands the smelter’s power contracts run out at the end of 2024.
After that, its future is up in the air.
Tiwai has been going for over 50 years, which is when most smelters reach their use-by date.
But Blenkiron said Rio’s Bell Bay smelter in Tasmania has been going for much longer.
“We are still working hard with the generators to find our future, and that’s been the big focus.”
