1 March 2006

Alcoa announced today that they would possibly want to build a $1-billion aluminum smelter in North Iceland. The proposed site is about 2 kilometers outside the town of Húsavík , in an area famed for strong earthquakes (frequenlty up to 7 on richter scale.)

The decision comes after an examination of three potential locations in Iceland, including sites near Skagafjördur and Akureyri. The Husavík location was chosen in part because of the area’s potential to use geothermal activity to supply energy for the smelter, according to Alcoa representative Jake Siewert. This is clearly a greenwashing opportunity ALCOA just can't miss.

“We don’t think there’s another aluminum plant in the world that’s powered exclusively by geothermal,” says Siewert. “And that would make this really a first of its kind.”

He added that ALCOA felt very "welcome" in Iceland in spite of the fact that the majority of the nation do not want to see more heavy industry in their country and half the nation think that the Karahnjukar dams inn the eastern highlands are a terrible mistake.

If approved, ground would be broken outside Husavík around 2010. The smelter would generate 250,000 metric tons per year, smaller than Alcoa's 340,000 metric ton smelter being built today in Reydarfjordur.

The disregard for environmental considerations and low cost of energy (the price is kept secret!) offered by the Icelandic government make the country very attractive for global corporations such as Alcoa, Alcan, Century and R&D Carbon to set up mega-projects.

Last week, Alcoa also entered into an agreement with the government of Trinidad and Tobago to build a $1.5-billion aluminum smelter despite mounting opposition.

Perhaps this feeling of being so "welcome" in Iceland had something to do with the decision of the ALCOA directors not to come to Iceland this time around to make their announcement. Just in case many Icelandic people would take to the streets to protest against ALCOA's pressence and NOT bid them welcome!

Less than an hour after ALCOA's New York announcement 30 young people stormed the ALCOA head office in Reykjavik. They staged a noise demo and demanded ALCOA should withdraw the plans for the smelter in the north of Iceland, that ALCOA immediately stopped building the smelter in Reydarfjordur, that ALCOA should get out of Iceland for good and that all further plans for any heavy industry in Iceland be abandoned.

The protesters got past security by making enquirees about ALCOA's policy regarding jobs for disabled people. Once the protesters were in the offices the ALCOA staff called the police who got violent as they ejected the protesters. Apparently the 'Viking' squad turned up and two people were hurt. According to the National Broadcasting Service one protestors' camera was seized (illegally) by the police.