Rio Tinto Boosts Investment In Icelandic Smelter

Rio Tinto Alcan says it is investing $487 million in its aluminium smelter in Iceland to increase production by 20 percent.

LONDON (AP) -- Rio Tinto Alcan says it is investing $487 million in its aluminium smelter in Iceland to increase production by 20 percent.

The company's announcement on Friday follows the signing of a long-term energy supply agreement with Iceland's state-owned power utility.

The latest funds will go toward a casting facility to produce value-added billet aluminum at the Straumsvik smelter.

Rio Tinto Alcan says that the smelter is expected to commence the gradual increase of its production in April 2012 and complete the production increase by July 2014.

The company says the investment will reinforce Rio Tinto Alcan's market position in Northern Europe and demonstrates its long-term commitment to being a stable supplier of high-quality billet.
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