04.10.2010 | Editor: Marcel Dröttboom
Montreal (QC), Canada – Rio Tinto Alcan will move forward with its planned USD 347 million aluminium smelter modernisation project to increase the annual production capacity of its smelter in Straumsvik, Iceland (Isal), after finalising the landmark energy supply agreement reached earlier this year with Landsvirkjun, the Icelandic power utility.
The new contract will apply from 1 October 2010 and will run until 2036. The contract provides for 75 MW of additional power and for the continued supply of energy currently purchased by Isal under various agreements, allowing Rio Tinto Alcan to carry out an amperage increase at the smelter. The increased amperage is part of the modernisation project that will boost production capacity at the smelter by 20 per cent to approximately 230000 tonnes and ensures continued compliance with emission limits and reliability of operations. Isal is expected to commence the gradual increase of its production in April 2012 and complete the production increase by July 2014.
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