They believe that with the short term to medium outlook for the aluminium industry looking challenging, that this asset could continue to be unprofitable.
High energy costs are also a factor. Rio Tinto intends to hold discussions with the Government of New Zealand and energy providers to explore options and identify economically viable solutions to find a pathway to profitability for the asset.
NZAS is a joint venture between Rio Tinto (79.36 per cent) and Sumitomo Chemical Company (20.64 per cent) and employs around 1000 people.
Shares in Rio Tinto (ASX:RIO) closed 1.49 per cent higher at $89.43 yesterday.