Fico: Government Keen for Production at Slovalco to Resume in 2027

Ziar nad Hronom, 27 February (TASR) - The government is keen to see production at aluminium smelter Slovalco resume in 2027, Premier Robert Fico (Smer-SD) told a news conference after signing a memorandum of understanding on measures to support primary aluminium production in Ziar nad Hronom (Banska Bystrica region) on Friday.
        According to the premier, the memorandum contains proposals for specific steps that should help to restart operations at the Ziar nad Hronom-based aluminium smelter. These include, for example, changes to the compensation scheme for energy-intensive enterprises and long-term electricity supplies to the plant in Ziar nad Hronom at commercial prices.
        Fico reiterated that the Ziar nad Hronom plant is a victim of poorly set climate goals and the climate policy of the European Union (EU). "We close an efficient ecological factory that produces the critical material that we need because of high prices, and we import this critical material in millions of tonnes from other regions of the world to Europe," said Fico, adding that the energy costs of companies in China or the USA are significantly lower than those of European factories and that a Europe-wide solution to this situation needs to be sought.
        In a memorandum signed by Slovalco, the Norwegian owner of the aluminium smelter, and the Environment, Economy and Finance Ministries, the government proposes several specific steps to help the Ziar nad Hronom-based factory restart primary aluminium production. For example, Slovakia plans to ask the European Commission (EC) to approve a change to the state scheme for energy-intensive companies, modelled on the mechanism in place in Germany.
        "We propose that, as a basis for calculating compensation for indirect costs related to emission permits and emissions, we'll demand that this calculation should be based on 1.5 percent of the company's gross product. As far as income from emission permits is concerned, we suggest that we could use more than 25 percent to compensate for indirect costs," said the premier, adding that the government is also proposing to sign a ten-year contract for electricity supplies to the aluminium smelter at commercial prices. He added that negotiations with Slovalco are due to continue on Monday (2 March).
        Slovalco itself welcomed the government's interest in resuming primary aluminium production in Ziar nad Hronom. If specific measures are agreed, it would like to start refiring the furnaces in the autumn. "Slovalco is technically ready to restart production. We have 226 furnaces, we can start up one of those furnaces per day, and there are weekends, so we need almost a year to get it all started," noted Slovalco general director Milan Vesely.        
        The aluminium smelter in Ziar nad Hronom originally operated over 220 electrolysis furnaces. Primary aluminium production was curtailed in the summer of 2022, with the last furnaces being shut down in early 2023. Slovalco at that time pointed to high energy prices and insufficient state compensation for energy-intensive industries. The company originally had up to 500 employees. It currently employs some 180 people, who operate a recycling centre for scrap processing.