Energy for Straumsvík Expansion to Come From Búðarháls-Powerplant
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.
A week after the signing of the deal with Alcan, Landsvirkjun invited tenders on the construction of Búðarháls-powerplant and related constructions. The tenders close at the end of August, and construction is expected to be finished by the fall of 2013. Read More

Orissa is the most mineral rich state in India. It is green and fertile, a patchwork of tiny fields and thickly forested mountains with waterfalls tumbling over their red rocks. Like many of the world’s remaining areas of natural fertility, these mountains are largely populated by tribal peoples, which in India are called Adivasis – meaning literally ‘the original inhabitants’ – and are thought to be one of the oldest civilisations in the world. One quarter of the Orissan population are tribal, making it also the ‘poorest’ state in India according to the World Bank. But its figures judge well-being only by monetary exchange, and fail to mention that there has never been a famine recorded here, and that many Adivasis rarely use money, living in balance with the mountains, streams and forests which provide everything they need. In thanks for natures’ providence many Adivasi cultures worship the mountains on which they depend as Gods, and vow to protect their bountiful natural systems from damage. Some of the Orissan mountains are among the last ancient forest capped hills in India, thanks to the determination of tribal inhabitants against British colonial efforts to log them.