Iceland and Alcoa Sign New Declaration of Intent Skip to content

Iceland and Alcoa Sign New Declaration of Intent

Minister of Industry Össur Skarphédinsson will meet the assistant director of US aluminum company Alcoa today to sign a new declaration of intent on the planned aluminum smelter at Bakki near Húsavík in northeast Iceland.

“A declaration of intent from May 2006 is being updated,” Skarphédinsson’s assistant Einar Karl Haraldsson told Fréttabladid. In the last declaration of intent an annual 250,000-ton aluminum production and an annual 400-megawatt energy usage was agreed on.

Alcoa has not completed the projects listed in the last declaration of intent. “They are only beginning with an environmental impact assessment and a feasibility study has not been completed either. Therefore it is natural to extend [the declaration of intent],” Haraldsson reasoned.

Prime Minister Geir H. Haarde said in an interview with Dow Jones yesterday, that in light of Iceland’s current difficult economic situation, authorities are be more likely to approve a new Alcoa smelter now than before. The price of aluminum is currently skyrocketing.

Skarphédinsson would not comment on the issue. Before the general election in May 2007, his party, the Social Democrats, expressed their view that all heavy industry projects in Iceland should be put on hold for up to five years.

Click here to read about the construction of a new aluminum smelter in Helguvík.

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