Rio Tinto Still Planning New Smelter in Iceland
Rio Tinto Alcan is still planning to construct a new smelter in Iceland, as well as in Canada, Malaysia, Saudi Arabia, Oman and Cameroon. In total the mining and metals giant is planning to expand it’s aluminium production capacity by 2.6 million tons. All the projects are projected to start between 2011 and 2014. Rising energy prices are driving fossil fuel powered smelters out of business, report financial news analysts Bloomberg. Thus Rio Tinto are looking at accelerating hydro-powered smelter construction.
Rio Tinto has thought to construct a new smelter in Thorlakshöfn or Keilisnes. Landsvirkjun have said they do not wish to construct more power plants for another new smelter in South West Iceland, but apparently Rio Tinto Alcan are still counting on it. Currently Budarhals dam in Tungnaa is being constructed to increase production in RTA’s Straumsvik smelter with 40.000 tons.