Saving Iceland

Helga Katrín Tryggvadóttir

Icelanders are notoriously bad investors. Once someone has a business idea, everyone jumps on the wagon and invests in exactly the same thing. The infamous growth of the banking sector is one example, before the 2008 banking crash the Icelandic banking sector was 12 times the size of the GDP and Iceland was supposed to become an international financial centre. I have no idea how anyone got the idea that an island with three hundred thousand inhabitants could become an international financial centre, but many people in Iceland considered this a perfectly normal ambition.

And then there are the politicians, they have had the same investment idea for more than hundred years. Either it is building an artificial fertiliser factory, or it is building an aluminium smelter. Last year one MP proposed building an artificial fertiliser factory, in order to “lure home” young Icelanders who have moved abroad. A majority of those have moved abroad to educate themselves, but sure, who doesn’t want to use their PhD on the factory floor?

Now there is an Icelandic investor in the North of Iceland, Ingvar Skúlason, who is planning on building an aluminium smelter, at a time when aluminium prices have been dropping due to overproduction. He has already managed to sign a deal with a Chinese company, NFC, which is willing, he says, to pay for the whole construction, yet the smelter would be owned by Icelandic companies. All of this sounds kind of dubious in my ears. And everyone can see that this is not a good idea, even the banks, with a new report released by Arion Bank advising against more investment in the aluminium industry. The bank bases its analysis on the fact that aluminium price is too low at the moment to bring any profit into the country (since the price for the electricity is connected with the price of aluminium, the price the aluminium smelters pay to the National power company (LV) is low when aluminium prices are low).

But that does not stop the politicians from supporting the idea. The prime minister Sigmundur Davíð Gunnlaugsson, was present when Skúlason signed a deal with the Chinese company, praising the initiative. Skúlason also claims to have support from the Minister of Industry, which is not surprising since her only campaign promise was building an aluminium smelter and get the “wheels of the economy rolling”. Recently, Alcoa World Alumina, owned by Alcoa Inc., admitted to having bribed officials in Barein. In Iceland, however, they have never had to pay any bribes. Icelandic officials have been more than willing to do their service for free, “bending all the rules” as Friðrik Sophusson, former head of LV, was caught on tape saying.

There are currently three aluminium smelters in Iceland. Together, they use 80% of the energy produced in the country and their profit account for 60 billion ISK a year (USD 500 million). Yet, a majority of the profit is registered as debt to their parent companies abroad, leaving the Icelandic subsidiaries operated in debt but creating profits to the parent companies. The only profit that is left in the country is the wages they pay to their employees, and that only accounts to less than 1% of the national revenue. The jobs they create (which is usually the main argument for their construction), also account for less than 1% of all jobs in Iceland. The price they pay for the energy is also below the normal market price. Lets think about this for a second: 80% of the electricity produced in the country goes to international corporations that only produce 1% of the national revenue and creates 1% of the jobs, exports the majority of the profits and pays below-market price for the energy. So, 99% of the people do not get any share in the majority of its electricity production. Sounds familiar.

Maybe it is time to occupy the smelters?

At the beginning of July the results of a framework programme, concerning the exploitation and protection of Iceland’s natural resources, will be presented publicly. The timing of the presentation has much more to do with demands from the labour market agents, rather than the government’s will to try to reach a settlement about the result, according to the Icelandic Nature Conservation Association (INCA, or NSÍ in Icelandic), which is highly critical of many aspects of the making of the framework programme.

One of the association’s primary criticisms is directed towards the fact that a particular committee, nominated to sort the areas in question into three different categories: protection, hold and utilization – did not include a single representative from environmentalist organizations. Whereas representatives from the energy and tourism industries, as well as the ministries of environment and industry, had seats on the committee. The viewpoint of nature conservation has thus no spokesperson in the working progress, states a press release from INCA. Read More

By Jaap Krater

Last spring ALCOA released the first draft of the joint environmental impact assessment for the proposed Bakki smelter and power plants at Krafla and Theistareykir. Recently Iceland’s National Planning Agency commented on the draft assessment in a damning commentary.

The agency stated that the 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 great deal of uncertainty on the full impact of the planned power plants and particularly on how much geothermal energy can be sustainably produced. Finally, the assessed energy projects will not be able to fully power the smelter, with 140 MW of capacity missing.

This confirms three key points of critique on the smelter that we have been voicing for several years now. Read More

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

Jaap Krater, Morgunbladid – Thórunn Sveinbjarnardóttir’s has said the environmental impact of Alcoa’s planned Bakki smelter and the associated energy production needs to be considered jointly (1). This poses the question whether or not new dams will be needed for heavy industry in the north. Looking at what can be realistically realised from geothermal plants, it becomes clear that a number of hydro projects will inevitably be necessary to power the Bakki smelter, and they should be taken into the assessment. In this article Jaap Krater analyses the energy calculations for the smelter and potential power plants. Read More

Jaap Krater, Iceland Review – As someone who has been active with Saving Iceland for a number of years, I read James Weston’s column about media coverage on our campaign with much amusement. Many of his comments are not only funny but also have a ring of truth.
For me, they also illustrate something that is quite sad. People watch TV and see others chaining themselves to machines, according to polls most might even agree with them that they do not want more dams or smelters, and they get bored. Read More

Is the Energy on the Doorstep?

By Dr. Ragnhildur Sigurðardóttur

Many things have been said and written about plans for ALCOA´s aluminium plant at Bakki near Húsavík. One after another, important men have praised the idea and by now the only political parties not supporting it are the Iceland Movement and the Left Green party.
The propaganda of the supporters follows these lines: “utilise the national energy potential,” “the people of Húsavík have a right to an aluminium plant,” “the plant will only use energy drawn from the land nearby Húsavík, “damming of Skjálfandafljót and Jökulsá á Fjöllum is nothing but environmental propaganda”, “Geothermal energy has a low environmental impact”, “preparation work has been exceptionally well done.”
But how much truth do those slogans contain? Is there something more that needs to be looked into? Are the people of Húsavík, politicians included pushing the issues forward without really having looked at all the facts? Read More

The Stop the Dams mega concert, featuring a once in a lifetime collection of artists, was a huge success. At the concert the dates to the next protest camp at the Kárahnjúkar project were announced, 21st July. Hundreds if not thousands of Icelanders are expected to attend. The destruction will be stopped!

Almost 6,000 people partied in protest against the devastation of Iceland’s wildernesses on January the 7th.

The lineup included KK, Björk and Zeena, Múm, Sigur Rós, Magga Stína, Rass and Dr. Spock, Damien Rice, Mugison, Lisa Hannigan, Hjálmar, Ghostigital, Damon Albarn (from Blur), Ham, and Egó. Performance artists and film-makers were also among the nearly two hundred artists that contributed to the event.

In an interview with the British newspaper The Guardian (13 Feb ’06), Björk had this to say about politics and the dam: Read More

This time around Reykjavík was host to an International Conference on Anode Rodding Plants for Primary Aluminium Smelters. At the conference, which was largely funded by Icelandic tax payers’ money, Iceland was yet again being offered up for sale as a cheap country for aluminium smelting, while undesirable points of view were unwelcome.

On the morning of 21 September delegates woke up to a noisy bunch of protestors standing outside the Hotel Nordica blowing whistles and horns and banging away on pots and drums, just to remind the delegates and their hosts that there is active and unfailing resistance to the systematic destruction of Icelandic nature and the increase in pollution of our environment.

Same day in the late afternoon the representatives of the most polluting industry in the world were treated with champagne and canapés at the Reykjavík Municipality. At the same time an International Transport week was being celebrated in Reykjavík; its stated purpose was “to raise awareness among the public on the necessity of reducing pollution caused by traffic”. Greenhouse gas emissions from the ALCOA smelter in Reyðarfjörður will be equal to that of 172.000 cars; the entire car-fleet of Iceland!

Together with NatureWatch and youngsters of Ungrót, Saving Iceland organized another noise protest outside the Municipality as the mayor welcomed delegates of the conference. A heavy police presence was deemed necessary to protect the polluting fat cats while they sipped champagne and listened to fawning speeches of Icelandic dignitaries. For two hours environmentalists put on street performances and vigorously banged on their drums. A large window on the side of the building gave the delegates a good view of the crowd and their banners.

The protestors were content with their ample supplies of green skyr (Icelandic dairy product very useful for splashing on poisoners of the earth!) and in the spirit of sharing offered the delegates to have some on their way out from the mayor’s visit. This generosity caused unexplained tremors amongst the cops and delegates alike. Perhaps bad memories from last June had something to do with it…

23 September

Delegates of the conference visited the aluminium smelters at Straumsvík and Grundartangi. Saving Iceland went to the ALCAN factory to warn them what aluminium smelting can do to their health.

To indicate solidarity with the people who have suffered from ALCAN’s immoral and inhuman working practices around the world the protestors sang The Alcan Song:

“It’s ALCAN the Aluminium Man
The Aluminium Man with the Aluminium Plan
For making lots of aluminium
Out of other peoples land!

Will this Man of Aluminium
Realize what he’s done,
Once he’s done what he is about to start?
He’s got aluminium, but he’s got no heart!”

Meanwhile ALCAN’s flag was stamped on, torn and finally burnt.

Two people were illegally arrested for throwing a harmless and perfectly legal smoke-bomb into an open field. One of them was arrested for driving a “stolen” car from the protest, even if the owner of the car gave immediate proof thathe had his permission to drive the car! Both were held for five hours and released without charge.

Below is a statement from the protestors:

“Today delegates of the 3rd International Conference on Anode Rodding Plants for Primary Aluminium Smelters in Reykjavík are due to visit the aluminium smelters at Straumsvík and Grundartangi. Little attention has been paid by the conference to the negative impact and harmful effects to people’s health of aluminium smelting and related types of processing.

At this conference, which is partly funded by Icelandic tax payers’ money, the Technological Institute of Iceland, City of Reykjavík, the Ministry of Industry, Icelandair and the National Power Company, Landsvirkjun are among the sponsors and participants, Iceland is yet again being offered up for sale as a cheap country to smelt aluminium, while undesirable points of view are unwelcome.

We wish to convey the message to the conference guests that there is active opposition in this country to the further build-up of heavy industry, and point out the impact that this build-up will have on the local people and on the environment of those of us who live on Faxaflói bay.

Our protest is designed to express our opposition to the proposed expansion of the aluminium smelters at Straumsvík (ALCAN) and Grundartangi (Century), as well as the construction of an anode factory at Katanes (R&D Ltd.) and yet another Century smelter at Helguvik. We find it wholly unacceptable that the Faxaflói bay should become the most highly polluted area in Northern Europe, yet this is what will happen if these plans go ahead.

The additional sacrifices of Iceland’s most precious natural jewels, the Ramsar protected wetlands of Thjorsarver and one of Europe’s most beautiful lakes, Langisjor, to facilitate the expansions of the ALCAN and Century smelters are completely unacceptable.

We also wish to show our solidarity with the people who have suffered from ALCAN’s immoral and inhuman working practices around the world; from the workers at Straumsvík who have contacted us to describe their unacceptable working conditions and the abuse of employees’ rights, to the inhabitants of the Kashipur district of India who have been fighting for twelve years against a planned bauxite mine and ALCAN aluminium plant which will force at least 20,000 people to leave their farm lands and will pollute their water supply (see www.saanet.org/alcant), not forgetting the residents of Hafnarfjördur in Iceland who are demanding a local referendum on the expansion of the ALCAN plant.

We urge the press to better inform themselves about the environmental impact of the planned build-up of heavy industry around Faxaflói bay, and equally about the record and working practices of the foreign companies that the Icelandic government continues to eulogize and acclaim as the saviors of Iceland.”

(Needless to say, there are no signs of the Icelandic media picking up the challenge and doing their home work for a change. Icelandic media is under the tight control of the triple headed hydra; The State, the nouveau riche and the bitter old rich. Investigative journalism in the aluminium republic belongs to the past.)

With the growing awareness of climate change, carbon emission restrictions may not be too far off. Because countries that pollute the most may well get the heaviest restrictions, rather than seeking to reduce their emissions many industrial corporations are looking to move operations abroad.
Iceland, despite modern European levels of education, welfare and wealth, has almost no heavy industry. Their carbon rations will be up for grabs. Seeing the extra pollution coming, in 2001 Iceland got a 10% increase on the CO2 limits imposed by the Kyoto treaty. The problem is that the lack of heavy industry means a lack of the major power supply needed for such things. But Iceland has glacial rivers in vast areas unpopulated by humans; land for hydroelectric dams that can be seen as carbon-neutral. Read More