(GlobeNewswire) - Landsvirkjun and Elkem Iceland, which operates a ferrosilicon plant at Grundartangi in Iceland, have recently engaged in talks on the extension of the power contract between the companies. The current power contract between the companies dates from the year 1975 and expires in 2019. The plant started operations in 1979.
The current contract contains a provision allowing Elkem to extend the contract by 10 years, by submitting the decision on the contract price to arbitration.
Elkem has utilised this provision, with the effect that the power contract between the companies has been extended to the year 2029. The companies have agreed upon the appointment of the members of the arbitral tribunal that will decide the electricity price during the extended period.
Elkem is Landsvirkjun’s fourth largest customer. The power contract amounts to 127 MW and 1,035 GWh.
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