Rio Tinto Alcan has canceled its planned 40,000-tonne enlargement of the aluminium smelter in Straumsvik by Hafnarfjordur, as the company's CEO, Jacynthe Cote, announced to Iceland's Minister of Industry Ossur Skarphedinsson, Iceland Review reported. Rio Tinto Alcan had planned to undertake the smelter enlargement next year and the initiative was welcomed by Iceland's government since it would have created jobs for a host of construction workers, engineers and designers.

The decision may also have an impact on the plans of the National Power Company, Landsvirkjun, on a new power plant by Budarhals and consequently also on Verne Holdings's planned data centre by Keflavík International Airport, which was supposed to be powered by the Budarhals plant. Alcoa recently postponed its plans for an aluminium smelter by Bakki near Husavík in north Iceland.