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Alcoa plans enlargement for East Iceland smelter
Edited by : AL CIRCLE
2 min read
Alcoa Iceland is looking into the possibility of enlarging the Alcoa Fjaroaal aluminium smelter in Reyoarfjorour, east Iceland, inviting representatives of pension funds to see whether they might help fund the project, Iceland Review reported.
Alcoa is preparing to increase electricity capacity in the smelter, which would up its production capacity from 350,000 to 370,000 tons per year. The pot rooms must be modified and the project is estimated to cost more than $96 million (€73 million). Magnus Þor Asmundsson, CEO of Alcoa Iceland, said the company is also prepared to launch constructions which would increase the smelter’s production capacity by 180,000 tons, provided agreements are reached on funding and electricity purchase. The smelter would then produce 550,000 tons annually.
The project could be launched next year—provided the conditions are fulfilled—with the enlarged smelter being fully operational by 2018. The enlargement is estimated to cost $724 million (€551 million) and the addition would require 270 megawatts of energy. Many jobs would be created during the construction phase and 120 future jobs once production starts, in addition to related jobs, Magnus said. Currently 480 people are employed by Alcoa Fjaroaal and 300 by subcontractors. No formal discussions have taken place with Landsvirkjun, the national power company, but Magnus said they are aware of his company’s plans; among energy options are expanded operations of the Karahnjukar hydropower plant.
Alcoa is preparing to increase electricity capacity in the smelter, which would up its production capacity from 350,000 to 370,000 tons per year. The pot rooms must be modified and the project is estimated to cost more than $96 million (€73 million). Magnus Þor Asmundsson, CEO of Alcoa Iceland, said the company is also prepared to launch constructions which would increase the smelter’s production capacity by 180,000 tons, provided agreements are reached on funding and electricity purchase. The smelter would then produce 550,000 tons annually.
The project could be launched next year—provided the conditions are fulfilled—with the enlarged smelter being fully operational by 2018. The enlargement is estimated to cost $724 million (€551 million) and the addition would require 270 megawatts of energy. Many jobs would be created during the construction phase and 120 future jobs once production starts, in addition to related jobs, Magnus said. Currently 480 people are employed by Alcoa Fjaroaal and 300 by subcontractors. No formal discussions have taken place with Landsvirkjun, the national power company, but Magnus said they are aware of his company’s plans; among energy options are expanded operations of the Karahnjukar hydropower plant.
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