Alcan keeps its options open after "no vote" in Iceland

Alcan made a carefully-worded statement in response to the vote by locals against a proposed expansion of the Straumsvik smelter in Iceland.

The company said it "will carefully analyse the close results of last Saturday's public consultation in Hafnarfjordur and assess the impact these results may have on the future of its ISAL aluminum smelter."

The plan is to expand the smelter from its current 179,000tpy capacity to 460,000tpy with start-up in 2010 and full production in 2011. The company has secured a block of energy supplies and received permission from the Icelandic government for the project.

But locals voted by a narrow 50.3% against the plans and this will force a re-think and a possible re-jig of the project by the Canadian producer.

"Alcan has noted the results of the public consultation, and will now carefully review all available options" said Michel Jacques, President and CEO, Alcan Primary Metal Group. "A large proportion of the citizens of Hafnarfjordur support our project and I would like to thank them, as well as all of our ISAL employees, for their invaluable contribution in advancing the development of this project that we believe is beneficial to all stakeholders," he added.