The Icelandic State Radio, RUV, reports that the municipal authorities of Húsavík (pop. 2,500) and the representatives of US conglomerate Alcoa have reached a common understanding concerning the type of aluminum smelter they consider most feasible to build in Húsavík. The best option would be to dissemble an existing plant, currently in operation elsewhere and re-erect it in Húsavík with new control systems.
According to RUV, Alcoa has sent the Icelandic government a letter voicing its interest in building a second aluminum smelter in Iceland, mentioning the discussions that it has had with officials of the town of Húsavík. The new smelter could be operational as early as 2008, and it would use electricity from geothermal power plants utilizing steam from the geothermal hot-spots in the vicinity of nature preserve Lake Mývatn.