Rio Tinto’s new contract with Landsvirkjun expected to deliver power at competitive price to ISAL aluminium smelter

ISAL aluminium smelter in Iceland will expected continue operating with an improved competitive position as Rio Tinto has entered an agreement on an amended power contract. The agreement has been signed with power supplier Landsvirkjun for 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: “We are pleased to have reached an agreement on a power price that, coupled with improved efficiencies we have delivered at the site, makes ISAL more competitive.”

He also said, “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. 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.”

In addition to this agreement, Rio Tinto has decided to withdraw the complaint which was filed with the Icelandic Competition Authority in July 2020 regarding the energy supply for ISAL.