Investment agreement signed for construction of silicon-metal facility in Iceland

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

According to Invest in Iceland, this new facility in Helguvik, Iceland is expected to be operational by the second half of 2013 and will need 65 MW for its production of 40,000 MT of metallurgical silicon. The Icelandic Silicon Corporation (ISC), HS Energy and Landsvirkjun will be supplying energy for silicon production.

Construction of the plant is expected to start in Helguvik early this summer; the overall construction period is expected to last 20 months and provide 300 jobs during that time.

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 Reykjanesbær.

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 ISC and be responsible for operations and marketing. 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 more information on Iceland investments, visit www.invest.is.

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