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Smelter plans delay hydro project

NORSK HYDRO’S postponement of plans to build an Aluminium smelter in Iceland is also delaying the construction of the proposed 700MW Karahnukar hydro power plant.

Norsk Hydro said more time is needed to re-evaluate mid to long-term investment plans.

The project consists of a primary aluminium plant with capacity for up to 400,000tons per year. The energy required by the smelter was to be supplied by the hydro power plant.