Northwest Iceland Signs Contract for New Aluminum Smelter

Municipalities in Northwest Iceland have signed a declaration of intent and a cooperation agreement with Klappir Development ehf. on the construction and operation of a 120,000 ton aluminum smelter they hope to build at Hafursstaðir in Skagabyggð.

A joint statement came on Friday from the municipalities of Blönduósbær, Húnavatnshreppur, Húnaþing vestra, Sveitarfélagið Skagaströnd, Skagabyggð and Sveitarfélagið Skagafjörður.

To compare the plan to existing smelters, the annual production at Straumsvík is around 190,000 tons, around 260,000 tons at Grundartangi and 350,000 tons in Reyðarfjörður.

The joint statement says that the agreement has been made as a direct result of a parliamentary proposal, approved by Alþingi in January 2014, for national and local authorities to work together to push economic development in the Northwest, RÚV reports.

The plan is for the new factory to run on electricity from Blönduvirkjun dam and it will require 206 MW of power.

The statement adds that 240 jobs will be permanently created, and up to 800 temporary construction posts.

It is worth noting that Northwest Iceland does not include the Westfjords, which is counted as a separate region.

Copyright and Exemption Declaration :¢ÙAll articles, pictures and videos that are marked with "China Aluminum Network" on this website are copyright and belong to China Aluminium Network (www.alu.com.cn). When transshipment, any media, website or individual must list the source from "China Aluminium Network (www.alu.com.cn)". We seek legal actions against anyone that disobey this. ¢ÚArticles that marked as copy from others are for transferring more information to readers, do not represent or endorse their opinions or accuracy and reliability. When other media, website or individuals copy from our website, must keep the source. Anyone that changes the articles' sources will hold the responsibilities for copyright and law problems. We also seek legal actions against anyone that disobey this. ¢ÛIf any articles copied by our website concern the copyright and other problems, please contact us within one week.