The LoI covers electricity supply over an eight-year period from January 1, 2014, with a total delivery of 19 terawatt hours (TWh).

Since entering into the existing power contract with Slovenské Elektrárne 20 years ago, power prices in Slovakia have increased. 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 LoI is a first move towards securing the total framework that will enable continued operations at Slovalco. Securing other elements in the power framework will also be important in the process going forward.

Slovalco is a fully consolidated aluminium smelter in Hydro, owned 55% by Hydro Aluminium AS. Slovalco has an annual production capacity of approximately 165,000 metric tons.