Announcement

In reply to a verbal inquiry made today by the Hellenic Capital Market Commission, MYTILINEOS HOLDINGS S.A. clarifies the following:

ALUMINIUM S.A. and the Public Power Corporation S.A. (PPC) jointly opted to recourse to the Permanent Arbitration Tribunal at the Regulatory Authority for Energy (RAE) (art. 37 of Greek Law 4001/2011) in order to determine the terms of the Supply Contract regarding the supply of electricity to ALUMINIUM by the PPC. According to the Arbitration Agreement which the two companies co-signed regarding the recourse to the Permanent Arbitration Tribunal, the subject matter of the arbitration concerned the updating of the terms of the contractual relationship and the determination of a fair and reasonable price, which “on the one hand would accommodate the consumption characteristics of ALUMINIUM and on the other hand would cover at least the costs of the PPC.” The arbitrators and the President of the Arbitral Tribunal were appointed with the consent of the two companies, taking into account their scientific credentials and expertise on the subject.

In the proceedings, which lasted more than 18 months and during which studies and opinions by acknowledged academics and international consulting firms were produced by both parties, the collective Arbitration body examined for the first time the actual costs of the PPC for serving the consumption load of ALUMINIUM and, based on related evidence,  ruled that PPC is obliged to supply electricity to ALUMINIUM at the price of 40.7 €/MWh for the entire annual consumption of ALUMINIUM, exclusive of the Special RES Levy (ETMEAR), Excise Tax (EFK) and Customs Rights (DETE). The aforementioned price shall apply for the period from 1.7.2010 to 31.12.2013.

The PPC's failure to comply with the above Arbitration Ruling, especially considering PPC's super-dominant position in the domestic electricity market, and especially the termination of the contract, is in direct violation of the Arbitration Award, the Electricity Supply Code and defies the constitutional principles and institutions and cannot possibly be tolerated under the rule of law.