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MEI Online: Plant Operation News: Europe: May 2nd 2002


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:: Alcoa in Talks on Iceland Aluminium Smelter

Alcoa Inc., the world's leading aluminium producer, is in talks with the Icelandic government on building a 280,000-tonne smelter.

Alcoa declined comment beyond a company statement that said it was assessing the possibilities of building a smelter and that further discussions between Alcoa and Icelandic parties would take place in the next weeks.

Alcoa entered the picture when Reykjavik began looking for new investors to help build the smelter when original partner Norsk Hydro (NHY.OL), a Norwegian industrial conglomerate, said it would postpone a decision whether to participate in the project.

A decision was expected within the next two months after Alcoa had conducted a feasibility study.

The project has caused controversy in Iceland, where some environmentalists say the smelter and the hydro power plant needed to generate the electricity to run it could damage wetlands in the region.




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