Chinese investor Huang Nubo and his company Zhonkun Grímsstaðir ehf. must reapply for the rental of land in Grímsstaðir á Fjöllum in Northeast Iceland, according to the conclusion of the government committee which looked into the application. The announcement was made after a cabinet meeting this morning.

The committee says that it still lacks all the necessary information to properly assess the application. In a letter from Minister of Industries and Innovation Steingrímur J. Sigfússon sent to director of Zhonkun Grímsstaðir Halldór Jóhannsson, it is stated that due to the significant amount of time that has passed since the application was first submitted, and that both sides agree that sufficient information has not been provided, a new application must be submitted, ruv.is reports.

After Minister of the Interior Ögmundur Jónasson rejected Huang’s application for legal exemption to buy the piece of land (a requirement for non-EEA citizens), employment development associations in the rural regions Eyjafjörður and Þingeyjarsýslur were asked to examine the possibility of municipalities in North and East Iceland buying Grímsstaðir and leasing it to Huang’s investment company.

In May they concluded that the municipalities can establish a limited company to acquire a 70 percent share in Grímsstaðir. They suggested that an Icelandic company in Huang’s ownership rent the piece of land for 40 years and pay the rent in advance.

In July, the Government of Iceland decided to appoint a committee comprised of ministers and employees of different ministries to discuss the planned lease of the piece of land Grímsstaðir á Fjöllum to Huang and developments in tourism in Northeast Iceland.

The piece of land covers 300 square kilometers.

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