Rio Tinto has reached an agreement with Landsvirkjun on an amended power contract that will allow the ISAL aluminium smelter in Iceland to continue operating with an improved competitive position.
The agreement will deliver a more competitive power price and energy flexibility that is mutually beneficial for both ISAL and Landsvirkjun.
Rio Tinto Aluminium Chief Executive, Alf Barrios, said the company is pleased to have reached an agreement on a power price that, coupled with improved efficiencies the company has delivered at the site, makes ISAL more competitive.
“This provides a stronger footing to continue operations at the smelter and gives increased security for the team at ISAL, who have been doing an outstanding job in challenging conditions,” Mr Barrios said.
“We will continue to work to strengthen ISAL’s future in order to keep supplying low carbon aluminium to customers in Europe and North America, and making a significant contribution to Iceland’s economy.”
CEO of Landsvirkjun, Hörður Arnarson, said changes to the energy sales agreement will benefit both parties while increasing the efficiency of the electricity system in Iceland.
“Landsvirkjun’s goal is, as before, to ensure predictable income while taking into account changes in international markets and the needs of our customers.”
Rio Tinto has also decided to withdraw a complaint filed with the Icelandic Competition Authority in July 2020 regarding the energy supply for ISAL.
ISAL is wholly-owned by Rio Tinto and employs around 500 workers on-site.
