SYDNEY, April 2 (Reuters) - Rio Tinto (Xetra: 855018 - news) says it believes it can negotiate cheaper electricity for its loss-making aluminium smelter in New Zealand after rejecting a government subsidy offer.
"We are of the view that a commercial agreement can be reached in relation to the NZAS (New Zealand Aluminium Smelter) electricity supply contract," Rio Tinto said in a statement emailed to Reuters.
Rio Tinto rejected a New Zealand government offer of a short-term subsidy to prop up the smelter and was trying to reach an agreement directly with the electricity firm, Meridian Ltd, according to New Zealand Prime Minister John Key.
