Rio Tinto Files Complaint Over ISAL Smelter

Rio Tinto has submitted a formal complaint to the Icelandic Competition Authority (ICA) alleging abuse of market dominance by Landsvirkjun, the energy supplier to Rio Tinto’s ISAL aluminum smelter in Iceland.

The company’s complaint alleges that pricing terms of the power agreement with Landsvirkjun are discriminatory, abuse its market dominant position and cannot be justified. Landsvirkjun’s supply contracts bind customers to long-duration terms, rendering it impossible for alternative energy suppliers to either enter the Icelandic market or expand operations, the company said.

If Landsvirkjun does not address its abusive conduct, Rio Tinto said it will have no choice but to consider terminating its energy contract and plan for the closure of the smelter.

As featured in Womp 2020 Vol 08 -