SINGAPORE Norsk Hydro ASAs majority owned Slovalco aluminum smelter in Slovakia has signed an eight-year power supply deal with utility Slovenské Elektrárne AS, it said July 18.
Starting Jan. 1, 2014, Slovenské Elektrárne will supply 19 terawatt hours (TWh) of electricity under the terms of the deal, Norsk Hydro said. "The (letter of intent) is a first move towards securing the total framework that will enable continued operations at Slovalco," it added.
Power prices have increased in Slovakia since the company entered into its existing power contract with Slovenské Elektrárne 20 years ago.
Norsk Hydro didnt divulge the terms of the new deal.
"Slovalco will continue to focus on strengthening its competitiveness through efficiency measures and cost improvements, while in parallel working to achieve a competitive future power supply," the company said.
Slovalco is located in iar nad Hronom, Slovakia, and produces primary aluminum on one pre-bake line, with a capacity of about 165,000 tonnes per year. The company is 55-percent owned by Norways Hydro Aluminium and 44.7 percent by Slovakias Zavod Slovenskeho Narodneho Povstania AS.
A version of this article was first published in AMM sister publication Metal Bulletin.