Article - 10/01/2014

Mannvit Contracted for Feasibility Study of Silicon Metal Plant

Today Thorsil ehf and Mannvit hf signed an agreement for the engineering of a silicon metal plant that Thorsil intends to construct and operate in Helguvík, Iceland. The contract with Mannvit, in cooperation with Norconsult AS, is for the engineering, procurement and construction management (EPCM) of the silicon metal plant. The contract value for the feasibility phase is ISK 508 million (USD 4.4 million).

Thorsil increased its share capital in December 2013 in order to finance this part of the project. Arctica Finance hf is the company’s financial advisor and oversaw the funding for the feasibility phase. 

Thorsil and Reykjanesbaer municipality signed a contract in October 2013 for the 16 hectare plant site at the industrial and port area of Helguvík. The plant’s environmental impact assessment (EIA) is under way and construction is set to start late 2014.

Roughly 300 people will be employed during the plant construction and production is estimated to start in the third quarter of 2016. Some 160 new jobs will be created once the production is up and running in addition to jobs at related service providers and vendors. The plant will have an annual production capacity of 54,000 tons per year.

A long term power contract is in place with Icelandic National Power Company, Landsvirkjun, for 87 MW of power, with an annual consumption of 730 GWh. Long-term offtake agreements for over half of the production are in place.