Aluminium smelter plant in Maniitsoq

The location proposal is the municipality's proposal C in the north-western part of Maniitsoq Island.

One year ago, the three municipalities, Sisimiut, Maniitsoq and Nuuk each submitted three proposals for location of the smelter plant. In making its choice, the Greenland Government has taken into account several aspects such as construction costs, nature and environmental issues, as well as regional development.

Calculations made by Alcoa and Greenland Development have clearly shown that the location in Maniitsoq is financially the best choice.

On the basis of nature criteria in the strategic environmental assessment, the location in Maniitsoq seems to involve fewer risks than the other options. Neither are there any environmental arguments against the proposed location.

In 2008-09 further studies of hydro power, nature and environmental conditions etc. will be carried out.

- Establishment of aluminium production in Greenland will have a great macro-economic impact and it will help develop our business and commerce in the right direction with a sustainable and more independent economy. Many new jobs will be created and the educational system will face great challenges, said Member of the Greenland Government for Industry, Labour and Vocational Training, Siverth K. Heilmann, when the recommendation of location of the aluminium smelter plant was made.

Siverth K. Heilmann emphasised that one of the requirements put to Alcoa is that they use the most modern and environmentally friendly technology at the smelter plant. Alcoa have already accepted this.

The Government also considered whether Maniitsoq, as the smallest of the three towns, could cope with such a large commercial project. Construction of the smelter will mean that Maniitsoq will have about the same population as Sisimiut.

Sisimiut is an important growth and education centre in Greenland. Nuuk is the capital and administrative centre. Location of the smelter in Maniitsoq, will make the town a centre for industry, mining and energy production.

If, in 2009, the Parliament decides to realise the project, the coming mid-Greenland municipality will face many challenges with development of infrastructure, construction of housing, institutions, cultural facilities, new recreational activities, etc.

Assessments of ownership model
The Greenland Government is also recommending to the Parliament further work with Alcoa on a partnership model. This means that the Home Rule Government and Alcoa own jointly the hydro power stations, transmission lines and the smelter plant itself.

The choice of ownership model and ownership shares is very important for the size of capital investment required from the Greenland Government. Therefore the choice is also important for the economic risk there could be. As a result the advantages and disadvantages of the partnership model must be examined very closely in the coming years and compared with other options.

Only after this will the Greenland Parliament make a final decision on the ownership structure.

If everything goes according to plan, aluminium production will be able to commence at the end of 2014.