Statkraft to supply electricity to Boliden Odda until 2030

23.10.2008 09.00 | stock exchange information

(Odda, 23 October 2008) Statkraft and Boliden Odda have signed two long-term commercial contracts for the supply of industrial power during the period 2009 to 2030. Totalling around 20 TWh, this is the largest industrial power supply contract Statkraft has entered into since 1998, and confirms the company's role as the largest and most important supplier of electricity to Norway's power-intensive industry. As part of the deal, Statkraft will take over Boliden Odda's shares in AS Tyssefaldene.
"This agreement means that Boliden secures predictably priced long-term supplies of electricity for its zinc smelting plant in Odda. This will obviously play a part in improving the plant's competitiveness," says Svante Nilsson, president of Boliden's Smelters business area.
"We are very pleased to be signing yet another commercial agreement to supply Norway's power-intensive industry," says Statkraft EVP Jørgen Kildahl. "The agreement shows that Statkraft is able to offer industry predictable, long-term, competitive terms, which, considering that existing statutory-priced contracts are due to expire by the end of 2011, is very important. Statkraft is, and will remain, the largest supplier of electricity to Norway's power-intensive industry, and thereby an important industry partner."
Boliden Odda has decided to terminate its existing statutory-priced electricity supply contracts and enter into two new commercial contracts with Statkraft covering the periods 2009-2020 and 2021-2030 respectively. Both contracts are for the supply of approximately 900 GWh per year.
Statkraft owns the power plants in Tyssedal, but waterfall rights and power plants are leased on statutory-regulated terms to AS Tyssefaldene. Boliden owns 39.88 per cent of the shares in AS Tyssefaldene, while Statkraft owns 20.29 per cent. The remaining shares are owned by DNN Industrier AS.
The agreement will take effect from 1 January 2009, subject to regulatory approval.
Boliden is a leading European metals company whose core competence lies in prospecting, mine operations, smelting and recycling. While zinc and copper are the main metals mined and processed by the company, other important metals include lead, gold and silver. The company is divided into three business areas: Markets, Smelters and Mines. Boliden employs some 4,500 people and generates gross revenues of around SEK 33 billion per year. Its shares are listed on the Stockholm Stock Exchange's Large Cap list and on the Toronto Stock Exchange in Canada.
The Statkraft Group is a European leader within renewable energy. The Group generates hydropower, wind power, gas power, solar power and district heating and is a major player on the European energy exchanges. In Norway the company supplies electricity and heat to around 600,000 customers through its shareholdings in other companies. In 2007 Statkraft posted a profit after tax of NOK 6.6 billion, and employed around 2,300 employees in ten countries. The world needs pure energy. This is what Statkraft delivers - every day.

For further information please contact:
Jørgen Kildahl, EVP, tel: +47 909 86 332
Knut Fjerdingstad, Media Spokesperson, tel: +47 901 86 310