In Iceland, in recent years, the aluminum industry has developed greatly using imported raw materials.

In Iceland, in recent years, the aluminum industry has developed greatly using imported raw materials. In the near future, the construction of new aluminum plants will continue there, including jointly with Russian companies. What feature of Iceland’s natural resource base contributes to the development of the aluminum industry here?

The production of metallic aluminum from alumina raw materials is a very energy-intensive process. However, Iceland has sources of cheap electricity, geothermal plants. It turns out even cheaper to transport aluminum raw materials to a distant island in order to smelt valuable metal there. New aluminum smelters are being built in Iceland, even to the detriment of the traditional tourism industry for the island nation.