From Iceland — Magma Ready To Make Concessions

Magma Ready To Make Concessions

Published February 7, 2011

Magma Energy – which owns about 98% of HS Orka – says that it is ready to compromise with the Icelandic government over the use of natural resources.
Business newspaper Viðskiptablaðið reports that the company is ready to shorten the length of time that it is renting geothermal deposits, grant preemptive rights, and sell at least 25% of HS Orka.
Stafir, one of the largest pension funds in the country, has organised a three-person committee to see if they could make the purchase.
Meanwhile, Magma says that they are prepared to shorten their lease on geothermal deposits in the Suðurnes area from 65 years to 30 or 40 years.
As has been reported, the Icelandic government has sought to shorten Magma’s lease, with Prime Minister Jóhanna Sigurðardóttir saying that she hasn’t ruled out eminent domain.
The government has taken this decision after an online petition calling for a referendum on natural resources and for the sale of HS Orka to be stopped had reached nearly 50,000 signatures. The government then pledged that it would ensure all natural resources would be in public ownership, and that HS Orka would come under the ownership of the state again.
Talks with the government are still ongoing.
Government Talks With HS Orka Begin

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