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9/5/2003
Aluminum smelter construction agreement signed
Today, Friday, 5 September, representatives of Fjarðaál and the contractor Bechtel Group Inc. signed an agreement on the construction of an aluminum smelter in Reydarfjordur. According to the agreement, Bechtel will build a 322,000-ton aluminum smelter in Reydarfjordur, with a planned completion date in 2007. During construction, employee safety, environmental protection, collaboration with the local community and completion on time and within budget will be heavily emphasized.
The signing ceremony took place in the Reydarfjordur Community Centre in the presence of representatives of the Icelandic government, local authorities, companies and interested parties. Alcoa's President of Primary Metals, Bernt Reitan, signed the agreement on behalf of Fjarðaál and President of Bechtel Mining and Metals, Andrew Greig, on behalf of Bechtel. Those present included Minister of Industry and Commerce Valgerdur Sverrisdottir; Kristinn H. Gunnarsson, Chairman of the Althingi Committee on Industry; Smari Geirsson, President of the Fjardabyggd Town Council and Gudmundur Bjarnason, Mayor of Fjardabyggd.
It is anticipated that the construction of the aluminum smelter will cost about US$ 1 billion. Design work for the smelter has already begun, and plans call for the construction to begin late in 2005. Altogether, 2300 worker-years are estimated in connection with the project, and, at the peak, around 1500 employees will be working at the construction site. Plans call for a completion of the project in 2007. Bechtel's partner in Iceland is HRV Group, which consists of Honnun, Rafhonnun and VST.
Both parties to the agreement place heavy emphasis on the safety of the project employees and minimizing the project's impact on the environment. The parties to the agreement also committed to close collaboration with the local community regarding the construction.
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