'ALCOA' Tag Archive

Apr 07 2009
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Aluminum Companies Consulted About New Draft of the Icelandic Constitution


A parliamentary committee for redrafting of the Icelandic constitution consulted representatives from three foreign aluminium companies – Rio Tinto-Alcan, Alcoa and Century Aluminum – to give comments about the constitution. The chairman of the committee is the former minister of industry, Valgerður Sverrisdóttir – the ‘aluminium lady’.

A regulation about the national property of natural resources is in a draft of law that recently has been heavily debated in the parliament. The committee asked for comment from various directions, e.g. the aluminium and energy companies. All the three aluminium companies are owned by foreign investors and their holding companies are all registered abroad. Read More

Apr 07 2009

Iceland Attacked by Economic Hitmen


John Perkins, the author of The Confessions of an Economic Hitman, is currently in Iceland. Perkins is here to be at the premier screening of The Dreamland, a documentary based on Andri Snær Magnason’s book, also titled The Dreamland. Last Sunday, Perkins was interviewed in a political TV show on RÚV (the state television station) where he spoke about the threat of Icelandic resources being sold to foreign corporations and advised Icelandic authorities not to collaborate with the International Monetary Fund (IMF).

Perkins used to work for the U.S. National Security Agency and his job included “to convince poor countries to accept enormous development loans – and to make sure that such projects were contracted to U.S. companies,” as says on the back cover of his book. Perkins states that Iceland is the first ‘developed’ country in the world to be hit by the ‘Economic Hitmen’, referring to the invasion of the aluminium industry in Iceland. Read More

Mar 20 2009

The Dreamland – A Documentary by Andri Snær Magnason




From Draumalandið website – Dreamland is a truly epic film about a nation standing at cross-roads. Leading up to the country’s greatest economic crisis, the government started the largest mega project in the history of Iceland, to build the biggest dam in Europe to provide Alcoa cheap electricity for an aluminum smelter in the rugged east fjords of Iceland. The mantra was economic growth. Today Iceland is left holding a huge dept and an uncertain future

Dreamland is a film about exploitation of natural resources and as Icelanders have learned clean energy does not come without consequence. Iceland is a country blessed with an abundance of clean, renewable, hydro-electric and geothermal energy. Clean energy brings in polluting industry and international corporations. Read More

Feb 09 2009

Iceland’s Ecological Crisis: Large Scale Renewable Energy and Wilderness Destruction


From New Renaissance Magazine

By Miriam Rose

The economic issues currently causing mass demonstrations in Iceland have a less publicised ecological cousin, and one which the IMF has recently identified as part of the economic collapse. In 1995 the Ministry of Industry and Landsvirkjun, the national power company, began to advertise Iceland’s huge hydropower and geothermal energy potential. In a brochure titled “Lowest energy prices!!” they offered the cheapest, most hard working and healthiest labour force in the world, the cleanest air and purest water – as well as the cheapest energy and “a minimum of environmental red tape” to some of the world’s most well known polluting industries and corporations (such as Rio Tinto and Alcoa). This campaigning has led to the development of an ‘Energy Master Plan’ aimed at damming almost all of the major glacial rivers in Iceland, and exploiting all of the geothermal energy, for the power intensive aluminium industry. The loans taken by the Icelandic state to build large scale energy projects, and the minimal payback they have received from the industry, has been a considerable contributing factor to the economic crisis, while at the same time creating a European ecological crisis that is little heard of.

The Largest Wilderness in Europe
I first visited Iceland in 2006 and spent a week with activists from the environmental campaign Saving Iceland, a network of individuals from around Europe and Iceland who decry the fragmentation of Europe’s largest wilderness in favour of heavy industry. From these informed and passionate folk I learned of the 690 MW Kárahnjúkar dam complex being built in the untouched Eastern Central Highlands to power one Alcoa aluminium smelter in a small fishing village called Reydarfjörður. The dams formed the largest hydro-power complex in Europe, and were set to drown 57 km2 of beautiful and virtually unstudied wilderness, the most fertile area in the surrounding highlands. Ultimately it would affect 3% of Iceland’s landmass with soil erosion and river silt deprivation. They also explained how materials in the glacial silt transported to the oceans bonds with atmospheric CO2, sinking carbon. The damming of Iceland’s glacial rivers not only decreases food supply for fish stocks in the North Atlantic, but also negatively impacts oceanic carbon absorption, a significant climatic effect. After taking part in demonstrations at the construction site of the Alcoa smelter (being built by famous Iraq war profiteers Bechtel), I went to see the area for myself. Read More

Jan 30 2009

Norsk Hydro Wants to Build an Aluminum Smelter in Iceland


Þeistareykir ehf. and Landsvirkjun (Iceland’s national energy company) have now started discussions with the Norwegian aluminium producer Norsk Hydro about the purchase of geothermal energy from Þingeyjasýsla, north Iceland. The energy was supposed to run Alcoa’s planned aluminium smelter in Bakki, Húsavík.

The memorandum of understanding between Þeistareykir, Landsvirkjun and Alcoa because of the aluminium smelter in Bakki, ran out on November 1st 2008 and was not renewed. One of the reasons was said to be the uncertainty on the Icelandic financial markets. Tómas Már Sigurðsson, Alcoa’s director in Iceland, says that decisions about electricity purchase depends on the market situation and hopes that it will get better in the next 12 months.
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Jan 13 2009

Alcoa Loses 929 Million US Dollars


Alcoa recently reported its fourth quarter 2008 results which e.g. stated that the company lost 929 million US dollars during this period. Aluminium’s global price sank 35% during the fourth quarter and 56% since only July 2008. The demand for aluminium has dropped heavily.

“We are taking wide-ranging measures to address the economic downturn,” said Klaus Kleinfeld, President and CEO of Alcoa. “We have streamlined our portfolio to focus on businesses where Alcoa is the recognized leader, curtailed production to adjust to weakened demand, reduced global headcount, and achieved significant savings in key raw materials.”

According to Aloca’s press release aluminium production will be cut down by 750 thousand tons per year, which is c.a. 18% of the global production. 13,500 workers will lose their jobs (13% of the company’s workforce), salary will be frozen and no new employees will be hired for a limited time. Four company’s owned by Alcoa, that do not work inside aluminium production will be sold and investment costs will be lowered. The press release also states that Alcoa will use new ways to get raw materials.

Alcoa’s directors in Iceland say that these measures will not affect the production and work here in Iceland.

Dec 15 2008

No Enlargement in Straumsvík – Bakki Smelter Delayed


Rio Tinto Alcan has taken back it’s plan to enlarge it’s aluminium smelter in Straumsvík, Hafnarfjörður, according to the Icelandic newspaper Fréttablaðið. Alcoa’s planned smelter construction in Bakki (north-Iceland) will also be delayed for the next years. Landsvirkjun (national energy company) and Þeistareykir hf. have agreed to discuss with other interested buyers of geothermal energy in the north of Iceland.

Last Wednesday, Jacynthe Côté, Rio Tinto Alcan’s director, told Össur Skarphéðinsson, the minister of industry, that the company’s planned 40 thousand ton enlargement in Straumsvík would not take place. The enlargement was planned to take place in 2009, inside the company’s already declaired zone. The smelter’s production capacity would have raised from 185 thousand tons to 225 thousand tons.

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Nov 11 2008

Alcoa’s shares down as production is decreased


Today Alcoa’s shares lowered 7,6%  after the company announced that it would decrease production by 350 thousand tons per year. The cut-down takes place in Alcoa’s smelters in Ferndale, Washington; and Baie Comeau, Quebec. Alcoa runs the Fjarðaál aluminium smelter in Reyðarfjörður, east Iceland. Earlier the company had announced 256 thousand ton cutback in Rockdale, Texas which means that Alcoa’s production downturn is 15%.
Alcoa also announced that a 2,2 million ton enlargement of an aluminium smelter in Wagerup, Australia would be delayed.  The project’s estimated cost was between 3 and 4 million dollars and Alcoa said it will restart when the state of market change. According to experts, there is still redundance of aluminium on the market.

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Nov 02 2008

Alcoa Smelter in Bakki Delayed as Test Drilling is Postponed


Preperation for a new aluminium smelter in Bakki by Húsavík, has been delayed and the test drilling for geothermal power plants around lake Mývatn have been laid off. A memorandum of understanding between Landsvirkjun (Iceland’s national energy company) and Alcoa was not renewed now in the beginning of November as Alcoa is not ready to put more finance in to more drilling.
The Bakki smelter was supposed to be powered by geothermal plants in Þingeyjasýsla, near lake Mývatn. Four billion Krona’s worth of test drillings were scheduled for next year, both in Krafla and Þeistareykir. Alcoa was supposed to pay half of the cost. The decision on the future of the drilling will now be delayed for at least one year, according to a joint announcement by Landsvirkjun, Alcoa and Þeistareykir efh.

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Nov 01 2008

Protests in Guinea – Direct Action Stops Bauxite Transport


In Guinea, West Africa, people have stopped trains from Compagnie des Bauxites de Guinee (CBG) that move bauxite from mines to the harbors. Bauxite is the major raw material for aluminium production and Guinea is the world’s biggest bauxite exporter. The protests started yesterday morning, October 31st and have been increasing since than.
Protesters have been seeking out officialdom´s houses, robbed them and put fire to many houses. At least one woman died during riots that resulted from the actions. Today, the protesters have managed to stop many  trains interrupting the transport of bauxite, which is the country’s biggest export product. Read More

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