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Rio Tinto to Review Future of ISAL Aluminium Smelter in Iceland

Metal News - Published on Fri, 21 Feb 2020

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Rio Tinto said that it will review the future of its unprofitable ISAL aluminium smelter in Iceland, with curtailment and closure among the options. The miner said the smelter is expected to remain unprofitable in the short to medium term amid "challenging" conditions in the aluminium industry. It pointed to the smelter's uncompetitive energy costs and historically low aluminium prices. Rio’s aluminium business CEO Mr Alf Barrios said "We have worked intensively to improve ISAL's performance, however it is currently unprofitable and cannot compete in the challenging market conditions due to its high-power costs. Rio Tinto will review options for the smelter, with the aim of finding a solution for ISAL to become an economically viable business."

The strategic review, which consider all options including curtailment and closure, will be completed in the first half.

Production at ISAL has already been reduced to 85% of capacity.

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Posted By : Rabi Wangkhem on Fri, 21 Feb 2020
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