en.Wedoany.com Reported - Norsk Hydro's joint venture Slovalco has reached an agreement with the Slovak government to partially restart primary aluminum production after four years of shutdown, including a new long-term power supply contract.

Under the agreement, Slovalco will restart smelting capacity of 75,000 tonnes per year, with production expected to resume in the fourth quarter of 2026. Hydro stated that restarting the remaining 100,000 tonnes of capacity will depend on conditions after 2030 and additional power contracts.

The plant, located in the central Slovak town of Ziar nad Hronom, will boost the European market, which has faced metal shortages due to the closure of the Mozal smelter in Mozambique, new EU carbon taxes, and supply restrictions from the Gulf region conflict.

Slovalco, 55.3% owned by Norsk Hydro and 44.7% by Penta Investments Group, was forced to halt primary aluminum production in September 2022 due to financial losses caused by high electricity prices.

Hydro said the agreement sets "long-term framework conditions" for aluminum production, including a power purchase agreement with state-owned hydropower company Vodohospodarska Vystavba and a compensation scheme for indirect carbon emission costs under the EU Emissions Trading System (EU ETS).

Slovalco announced in a statement after the signing ceremony in Bratislava on Wednesday that it will invest €100 million ($140 million) to resume operations, supporting over 200 jobs.