Foreign direct investment agreement for new silicon-metal facility in Iceland signed

A new agreement for the construction of a new silicon-metal facility in Iceland has recently been signed by the ministers of industry and finance, the mayor of Reykjanesbaer and the Icelandic Silicon Corporation. This agreement is based on a new framework legislation on incentives for foreign direct investments in Iceland.

This new silicon-metal facility will be located in Helguvik, near Keflavik on the Reykjanes peninsula, and is expected to be operational by the second half of 2013. The facility will need 65 MW for its production of 40,000 MT of metallurgical silicon; according to Invest in Iceland, the Icelandic Silicon Corporation (ISC), HS Energy and Landsvirkjun will be supplying energy for silicon production.

The overall construction period is expected to last 20 months and will provide 300 jobs during that time; construction of the plant is expected to start early this summer. The project is fully funded with no public aid except those incentives stipulated in a special investment contract between the company, the government and the township Reykjanesbaer.

Responsible for marketing and operations will be Globe Specialty Metals, Inc., one of the world’s largest producers of silicon-metal and silicon-based specialty alloys, will own approximately 85 percent of the Icelandic Silicon Corporation.

Furthermore, Tomahawk Development in Iceland Inc. will continue to own approximately 15 percent of ISC; Tomahawk has during the last four years aimed at erecting a silicon-facility in Helguvik. ISC was granted in 2009 an Operating Permit on basis of an Environmental Impact Assessment completed in 2008.

For further details on foreign direct investments in Iceland, visit www.invest.is.