Helguvik, Iceland

The Helguvik project is a greenfield project for an aluminum reduction facility in Helguvik, Iceland (“Helguvik” or the “Helguvik project”), owned by our wholly-owned subsidiary Nordural Helguvik ehf. Construction of the Helguvik project is currently curtailed. The Helguvik project site is located approximately 30 miles (48 kilometers) from the city of Reykjavik, Iceland.

We commenced construction of the Helguvik project in June 2008. In late 2008, we curtailed construction activity and spending on the project in response to the global financial crisis and deterioration of Icelandic economic conditions, including the financial condition of our contracted power suppliers. Construction activity and spending on the project remain curtailed pending confirmation from the contracted power suppliers or potentially other power suppliers that they will deliver the required power per an agreed schedule.

We currently expect to restart construction activity at Helguvik if and when we are able to achieve a successful resolution of the power supply issues.

In connection with the construction of the Helguvik project, we have entered into an investment agreement with the Government of Iceland governing, among other things, the fiscal regime associated with the project and including a commitment by the Government of Iceland to assist us in obtaining necessary regulatory approvals for the completion of the Helguvik project. We have also entered into a transmission agreement with the national transmission company, Landsnet hf (“Landsnet”), to provide an electrical power transmission system to the Helguvik project. We have also entered into a site and harbor agreement, as well as technology and equipment supply agreements with respect to the Helguvik project.

Employment
Approximately 300-400

Rated Primary Aluminum Capacity
We have received a positive opinion from the Icelandic Planning Agency on the Environmental Impact Assessment for the proposed Helguvik smelter as well as an Operating License enabling production of up to 250,000 metric tonnes per year (mtpy). Subject to extension of the environmental permits, the Investment Agreement assumes production of up to 360,000 mtpy.

Reduction Facilities
Two potlines, each with 180 reduction pots

Casthouse Facilities
Casthouse to cast ingots and sows

Power Supply
Nordural Helguvik ehf has entered into power purchase agreements to provide power to the Helguvik project. These power purchase agreements provide power at LME-based variable rates and contain take-or-pay obligations with respect to a significant percentage of the total committed and available power under such agreements. The power purchase agreements also contain certain conditions to the power supplier’s obligations. Nordural Helguvik ehf is in discussions with the power suppliers with respect to such conditions and other matters pertaining to these agreements.

Contact Information
Address

Nordural Grundartangi ehf
Grundartangi
301 Akranes
Iceland