A partnership between a Chinese and an Icelandic company has been struck to build an aluminium smelter in north Iceland.
Kjarninn reports that Klappir Development ehf. and China Nonferrous Metal Industry’s Foreign Engineering and Construction (NFC) have signed an agreement to build a smelter in Hafursstaðir, in Skagabyggð, north Iceland. The smelter will be capable of producing 120,000 tonnes of aluminium every year, if completed.
Prime Minister Sigmundur Davíð Gunnlaugsson and Chinese ambassador to Iceland Zhang Weidong were present at the signing, which took place at the Ministerial House in Reykjavík.
A statement from the two companies says that they plan to cooperate in both the funding and managing of the smelter. The total cost of construction is estimated to be about 100 billion ISK, or 780 million USD. They say 800 temporary jobs will be created for the smelter’s construction, with 240 more permanent positions once the smelter is complete.
The electricity needed to power such a smelter is not yet available, as other heavy industry projects in Iceland that are farther along in production find themselves lacking power sources as well. The Icelandic Environment Association has also stated they do not want any more smelters built, but the municipality of Skagabyggð has already expressed their willingness to have the project.