September 14, 2011
Statement regarding the Bakki smelter project

The Icelandic Minister of Industry said in interviews with the media that she did not expect a decision from Alcoa about the Bakki smelter project in the next few years, and therefore it was necessary to look for other investor opportunities. Responding to her proclamation, Alcoa has issued a public statement.

Statement from Alcoa Iceland:
Alcoa has always been very serious about its intentions to build a smelter in Bakki, and we have invested a significant amount of time, energy and money in the development of this project.
Such a big project can only be realized in a close partnership and agreement between Alcoa, the Government, the municipalities in North Iceland and the power companies. We have said from the beginning that moving the project forward would depend on the amount of energy available for a competitive price, and the timeframe for when the energy would become available. We are aware that the Icelandic Government and Landsvirkjun have been pursuing other opportunities for the past two years and recent developments in North Iceland are indicating a different scenario for our project.
We will need some time to investigate what this means for our company.
Reykjavik, September 14th, 2011
Tómas Már Sigurdsson
Director, Alcoa Iceland