European mining giants warn that electricity costs account for 80% of aluminum prices! Soaring electricity prices are endangering metal supply

The industry association composed of several top miners warned that the energy crisis could undermine the green process in Europe and force producers to relocate.

Members of eurometalux include Glencore, Rio. Us, Norsk Hydro ASA, etc. Because of the restrictions on enterprise production caused by soaring electricity prices, the Association sent a letter to the European Commission urging it to further support the metal production industry, including ensuring that emission prices do not rise too high and more flexible aid guidance programmes.

Zinc producer nyrstar NV said on Thursday that it would cut production at a large Dutch plant during the peak of the day, highlighting that soaring electricity prices are endangering metal supply. According to the European metal industry association, for regional aluminum producers, the cost of electricity may be equivalent to 2000 euros ($2345) per ton, accounting for about 80% of the total price of aluminum.

Guy Thiran, President of the European metal industry association, and Mikael staffas, CEO of Boliden mining company, Sweden, said: "if electricity is still too expensive, it will hinder industrial electrification as a decarbonization route and it is difficult to achieve the objectives of the European Green deal proposal." "If a leading industry like us can't remain competitive and survive in this decade, it will be a big obstacle to other industries."

Glencore said that the global energy crisis could still be alleviated before winter, as high natural gas prices prompted users to seek cheaper alternative energy and even reduce consumption. Alejandro Sanchez gestido, the company's global head of liquefied natural gas, said on Thursday that if this situation continues, more demand may be destroyed this winter.