Rio Tinto Plc (RIO) will close an aluminum factory in Saint Jean de Maurienne, France, unless it reaches an agreement with Electricite de France SA by mid-September on an electricity-supply contract, Les Echos reported, citing executives at the companies.
Under the existing supply contract, which dates from 1985, Rio Tinto pays two to three times less than the going rate for power, Les Echos said. Negotiations for a new pact are dead, a the newspaper said, citing a person close to EDF that it didn’t identify.
Rio Tinto will try to sell the site if no agreement is reached, and has already sounded out possible buyers, the newspaper reported.
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