July 15, 2009 / 7:21 AM / 9 years ago

Greenland postpones decision on Alcoa plant -paper

COPENHAGEN, July 15 (Reuters) - Greenland’s local government has postponed deciding on whether to be a partner in Alcoa Inc’s (AA.N) planned $4 billion aluminium plant on the North Atlantic island, Danish daily Borsen said on Wednesday.

Greenland’s parliament will decide on the matter in spring 2010 and not this autumn as earlier planned, the paper said.

The total investment in the project, consisting of a smelter with annual capacity of at least 350,000 tonnes and two related hydropower plants, is 23 billion Danish crowns ($4.32 billion).

A spokesman for Alcoa said the company offered Greenland a stake of between 10 and 50 percent in the plant and Alcoa awaits the decision of the parliament.

The Greenland government needs more time to analyse the project, Flemming Dreschel, spokesman for the state body Greenland Development, told Borsen.

The Greenland employers’ association has warned against co-ownership of the plant as it sees little benefit for Greenland. Instead it advocates a concession model in which Greenland would levy taxes on the production and hydropower supply. (Reporting by Teis Jensen; Editing by Greg Mahlich)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below