Nov 29 2010
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Damning Environmental Assessment of ALCOA’s Smelter Plans for Northern Iceland
November 25th, the joint Environmental Impact Assessment (EIA) on Alcoa’s planned 346 thousand ton aluminum smelter at Bakki, Húsavík, was finally published. In response, Iceland’s National Planning Agency released an extremely critical commentary regarding the planned smelter and the geothermal plants that are supposed to power it.
It states that:
– Environmental impacts of the project are high and cannot be mitigated.
– 17,000 ha of untouched wilderness will be affected
– Greenhouse gas emissions of the project would constitute 14% of Iceland’s total.
– There is a high amount of uncertainty regarding the full impact of the planned geothermal power plants and particularly their impact of the geothermal energy resource base.
– The assessed energy projects are not sufficient to power the smelter, with 140 MW of capacity missing.
“These reports confirms three key elements of critique that Saving Iceland voiced now several years ago,” says Jaap Krater, a spokesperson for Saving Iceland. Read More

The disastrous chemical accident has been declared Hungary’s largest and most dangerous environmental catastrophe, exceeding by far the 130000 cubic meters of cyanide-tainted water that spilled in 2000 in Baia Mare, Romania. Ten years later, traces of cyanide are still found in the area. It is worth noting that this cyanide was in a liquid form, therefore very quickly carried aways by the river whereas the thick red mud will sit there for years, sipping into the ground and reaching ground waters.
Since 2002, when work began on constructing the Kárahnjúkar dam, which today provides electricity to Alcoa’s aluminum smelter in Reyðarfjörður, until end of the year 2009, 1700 work related injuries have been reported in relation to the dam’s construction. 120 of those injured are still disabled from work, ten of them having irrecoverable injuries – and four workers have died as results of their accidents.
Rio Tinto Alcan (ISAL) has landed all the energy-related deals necessary for the company to start expanding it’s aluminum smelter in Straumsvík. In the middle of June, Landsvirkjun (National Power Company) and Alcan renewed their current deal on energy purchase between the companies. The renewal included an extension on purchase right up until the year 2036, along with an added purchase of 75MW of power, energy Alcan needed to secure to be able to act on their plans on expanding the smelters productional capacity by 40.000 tons a year. This expansion will not exceed the companies current boundaries, thus manouvering around any results from local referandums against the smelters expansion. As mentioned earlier, the expansion also requires these 75MW of power on top of all the energy Alcan is already receiving at bargain prices. But the deal does have some reservations, most prominently a demand that the uncertainity about the taxation of heavy industry in the country be settled before the 31st of August. This is a clear and blatant example of how the power-sector and aluminum lobbyists toy with the countrys government, that has never dared to resist or stand up to this kind of pressure, or blackmails as it is, of financial muscle, so the same should be expected in this case.