All is not well with Iceland’s silicon metal industry

Judging from the websites of Stakksberg and PCC, the reader may be inclined to assume that everything is progressing well for Iceland’s silicon metal industry.

Stakksberg is the company set up by Arion Bank to try and sell the silicon metal smelter originally owned and operated by United Silicon in Helguvik, southwest Iceland, but which was closed down by Iceland’s Environment Agency in September 2017 after only nine months of (intermittent) operation. Their intention was to sell the plant after the necessary renovations had been done and a new environmental impact assessment had been prepared.

Indeed, the most recent press release on their news page (which is only in Icelandic, and is dated 7 May 2020) states that a preliminary EIA of improvements is now accessible on the website of Iceland’s Planning Agency.

The opening page of their English website states:

“Stakksberg owns a plant in Helguvik, which produces 99% pure silicon (Si) and has a production capacity of 23,000 tonnes per year. The silicon is used, among other things, to manufacture solar cells and computer circuits. Some 70 persons will be employed at Stakksberg’s plant in Helguvik when the plant starts its operation.”

Soon after Stakksberg took over, they said that there was some interest from prospective buyers regarding the smelter. But that was three years ago. More recently, due to continued difficulties in selling the plant – some of which are attributed to the difficult state of the silicon metal market – the value of the plant has been reduced to the sales value of the plot itself and to salvaging and resale price of the smelter’s equipment.

Perhaps it’s time for Stakksberg to update their website.

Meanwhile, up in North Iceland, PCC Bakki appear to have a more positive view of the market price for silicon metal, and intend to reopen in “spring”, which in Iceland usually means April/May. Little information is available from their website, as the most recent news there is dated December 5, 2019. Earlier this year, the Icelandic media reported that PCC had started employing people again, but on the Jobs section of their website they say they are accepting general applications which would be valid for three months. And if an applicant hasn’t heard within three months, they are welcome to apply again. That’s not very fair on potential applicants, if PCC are serious about restarting in “spring”.

PCC have not updated their Facebook page since February, when they advertised for an “electrician supervisor” to carry out maintenance.

I still think it unlikely that PCC will reopen.

Update: The newspaper Morgunblaðið reported this morning that a cargo ship with raw material for PCC Bakki had docked at the nearby town of Husavik yesterday morning. The director, Runar Sigurpalsson, says they hope to reopen at the end of April but there are still various various loose ends that have to be sorted out.

Update 19 April: The PCC Facebook page yesterday stated that they intended to do a small start-up today (which was expected to emanate pale smoke or heat mist, along with a “fireside smell” which they hoped would not trouble people in the vicinity). But today they say that they have had to postpone the startup for 24 hours and will now do it tomorrow…

Update 23 April: They started it up yesterday.