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.