Saving Iceland

Century Aluminum announced in a statement it is reconsidering the planned smelter in Helguvík. It said it has stopped making any new capital commitments due to the global financial crisis.

“In the current environment, we have ceased making any new capital commitments and are reducing project spending. We believe the potential exists for a prudent way forward over time, but will soberly evaluate the feasibility of all elements of the project during the near term,” (1) said Logan Kruger, Century’s CEO.

While Century Aluminum’s revenue for the third quarter of 2008 rose due to an increase in aluminium shipments (2), prospects were deemed less rosy. Merrill Lynch downgraded Century Aluminum’s investment rating to ‘underperform’. It said aluminium pricing is weak, inventories of the metal are high and there are little catalysts to drive the price up.

“Some might think this is bad news for Iceland and that a new smelter could help with the economic crisis. But when we looked at what happened with Alcoa Fjardaal and Karahnjukar, a cancellation of Helguvik may be a blessing in disguise,” says Saving Iceland’s Jaap Krater. Read More

For the last two weeks Iceland has been facing economic crisis, the worst since 1914. The Icelandic Króna (ISK) has fallen lower than ever and the whole economy seems to be close to a total collapse. How did this start and how does it look now?

The collapse of Iceland’s bank system

The morning of September 29th was the beginning of the crisis for the Icelandic public, when it was announced that the State and Glitnir, one of the tree big banks of Iceland, had come to an agreement that the State would buy 75% share in the bank. Signs of economic crisis have been visible for quite a long time in Iceland; economics and leftists have been warning the Government, but until September 29th, the Government and the Banks have repeatedly ignored these warnings and stated that everything is fine. According to Iceland Review “the state is not planning to be a majority owner in Glitnir long-term; the purpose with these actions is to secure economic stability.” At this time Glitnir had lost c.a. 85% of its share value when the stock market closed Friday September 26th.

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Iceland Review – Small communities in rural Iceland have neither been affected by the current economic crisis nor were they included in the period of expansion before the crisis arrived. Many of these communities have plenty of jobs available. Read More

Iceland Review – Human capital and production based on ingenuity is the way out of the crisis—not heavy industry, factory jobs and the destruction of nature in Iceland, said Ómar Ragnarsson after accepting the Seacology environmental prize. Read More

By Snorri Páll Jónsson Úlfhildarson, originally published in Morgunblaðið –

In his article, “Is There Enough Aluminium in the World?” Jakob Björnsson, former director of energy affairs points out that “by far the biggest part of alulminium usage in the world today is in the industrial countries, where 25% of the people of the world live.” He also mentions that when China and India will have gone through proper indutrialization, 62% of humanity will live in industrial countries and the other 38% are also on their way there; that they want to enjoy the indstrialized countries’ living standards, even dream of cars and beer cans. These are very important facts.

Two things make Jakob’s article very interesting. Firstly, he says that it is a realistic oppurtunity that all human beings on the planet can reach the “qualities of life” and lifestyle that Occidentals now live with. Secondly, he states that human equalitiy is possible inside the system we live in. Read More

One of India’s most isolated tribes, the Dongria Kondh, is preparing to stop British FTSE 100 company Vedanta from mining aluminium ore on their sacred mountain, after police and hired thugs forced protestors to dismantle a barricade over the weekend.
About 150 people had blocked the road in Orissa state on Wednesday after hearing that Vedanta intended to start survey work for a planned aluminium mine which would destroy an ecologically vital hill, and the Dongria Kondh’s most sacred site. Vedanta employees visited the blockade repeatedly, threatening the protestors. On Friday the villagers gave in and took down the barricade, but about 100 are still at the side of the road, blocking traffic when Vedanta vehicles approach. Read More

Alcoa, one of the world’s largest aluminum producers, has reported a 52-percent drop in third quarter profits and said it would conserve cash by suspending its stock buyback program and all non-critical capital projects. Alcoa, the first component of the Dow Jones industrial average to report earnings, said results were hurt by sharply lower aluminum prices, weaker demand and a charge from curtailing production at a Texas smelter. The company reported earnings of $268 million, or 33 cents per share, for the three months ended Sept. 30. That compared with $555 million, or 63 cents per share, during the same period last year.

Tom Henry, Toledo Blade – ILULISSAT, GREENLAND — Beyond the howl of sled dogs echoing across this hilly coastal village is the thunderclap of ancient icebergs splitting apart, a deafening rumble you feel in your bones. There’s no mistaking its big, loud, and powerful boom, a sound that can work up to a crescendo like rolling thunder. Or be as sudden as a shotgun blast. Lifelong Greenland resident Karen Jessen Tannajik said people who live in Ilulissat — an Inuit word for icebergs — notice more about what’s been calved by the village’s nearby Sermeq Kujalleq glacier than sights and sounds. Read More

Economist.com – When thinking globally requires unpleasant action locally.
LAST Thursday, at a conference on aluminium smelting in Germany, environmental activists tripped the fire alarms. Later, they set off a deafening rape alarm in the main auditorium, and suspended it out of reach of the indignant organisers using helium balloons. They also chucked in a few stink bombs, and scattered leaflets among the bewildered crowd.
Protesters from the same group have chained themselves to machinery, suspended banners from building façades and blockaded construction sites, to name just a few of the activities that have got them arrested, all in the name of “Saving Iceland”, as their organisation is called. Their grievance is simple: they do not think that power companies should be building dams and drilling wells for geothermal plants in pristine parts of Iceland, simply to provide power for aluminium smelters. Read More