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Iceland Rules Out Seizing HS Orka From Magma, Frettabladid Says

Iceland’s government has ruled out expropriating geothermal producer HS Orka hf, currently owned by Canada’s Magma Energy Corp., said Frettabladid, citing Industry Minister Katrin Juliusdottir.

The island’s government has asked Juliusdottir to negotiate with Magma that its right to utilize geothermal power in the country will be shortened from its current 65-year lease, the Reykjavik-based daily reported.

“It’s now clear that expropriating isn’t on the agenda and that we’ll now begin negotiations which will guarantee the government’s role in regards to the company,” Juliusdottir told Frettabladid.

To contact the reporter on this story: Omar R. Valdimarsson in Reykjavik valdimarsson@bloomberg.net

To contact the editor responsible for this story: Tasneem Brogger at tbrogger@bloomberg.net

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