Huang Offers USD Five Million for Lease of North Iceland Land Skip to content

Huang Offers USD Five Million for Lease of North Iceland Land

Chinese investor Huang Nubo’s company Zhongkun Grímsstaðir ehf. has reportedly offered to pay USD 5 million (ISK 615 million, EUR 3.86 million) for a 60-year lease of the piece of land Grímsstaðir á Fjöllum in Northeast Iceland, according to a draft agreement. This is USD 3 million less than originally estimated.

grimsstadir_a_fjollum_jan2012_psGrímsstaðir á Fjöllum. Photo by Páll Stefánsson.

According to an unreleased agreement between Zhongkun Grímsstaðir ehf. and Gáf, a private limited company owned by the Norðurþing municipality in North Iceland, the use of water and other natural resources such as geothermal heat are limited to the operation of tourist services with the exemption of Gáf, reports.

Bergur Elías Ágústsson, chair of Gáf and director of the Norðurþing district council, said that they do not want to waive their rights to the use of the local resources.

Bergur says that any decisions would need to be made in agreement with not only Gáf but with the zoning authority in the area, which in this case is the municipality of Norðurþing.

The agreement states that the rental price will be paid for “in ISK with the best available rate.” Bergur Elías declined to comment on the amount offered.

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