Premier: Government Intends to Sign Ten-year Memorandum with Slovalco

Ziar nad Hronom, 13 January (TASR) - The government plans to sign a ten-year memorandum of cooperation with the Slovalco aluminium plant, which ceased production of primary aluminium in early 2023, Premier Robert Fico (Smer-SD) told a news conference in Ziar nad Hronom (Banska Bystrica region) on Tuesday. As part of support for energy-intensive companies, Fico will propose a European solution involving several years of exemptions from the emissions-trading system. During his visit to Slovalco, the premier stated that the aluminium plant in Ziar nad Hronom is a modern and environmental-friendly facility capable of producing a raw material that is strategic for both Slovakia and the European Union (EU). He noted that some 1.2 million tonnes of primary aluminium are currently produced in Europe. "However, Europe needs some 6-7 million tonnes; everything else is imported from other countries. This plant was capable of producing 17-20 percent of that European output, which was roughly up to 200,000 tonnes of aluminium," said Fico. He also stated that several European companies have had to halt production due to high electricity prices, and that Europe now imports most of its aluminium from China or Africa, where energy is generated primarily from coal. According to the premier, the problem of energy-intensive industry lies in the emissions-trading system. "It's nonsense to shut down healthy, modern and environmentally friendly factories just to pursue ambitious climate goals, while importing aluminium from countries in which massive environmental pollution is taking place," said Fico. Fico believes that several-year exemptions from the emissions allowance trading system could help Slovalco and other energy-intensive companies. He plans to inform other European countries about the proposal and to present it to the European Commission as well. "However, this is 'a long-term run', as reaching such an agreement within the Commission and across the EU will be demanding and complicated," admitted Fico, who believes that other countries will back the idea as well. At the domestic level, the premier intends to sign a ten-year memorandum of cooperation with the aluminium plant in Ziar nad Hronom. "If we agree on this, I will, naturally, ask the European Commission if any investments or any aid provided by the state can be deducted from all macro-indicators, such as the deficit and public market," said Fico. The aluminium smelter in Ziar nad Hronom originally operated over 220 electrolytic furnaces. Production of primary aluminium was scaled down in the summer of 2022, with the last furnaces being shut down in early 2023. At the time, Slovalco pointed to high energy prices and insufficient state compensation for energy-intensive industry. The company originally had up to 500 employees, while currently some 180 people work there. The plant continues to operate only as a recycling centre for scrap processing. ko/df