Iceland’s natural resources sold

This site reported the dealings of the Canadian fraudsters water rights in Iceland a while back. See here. Now a new Canadian is buying up HS Orka (HS Energy) in partnership with Geysir Green Energy, a company that has been a center of massive controversy connected to the aluminium industry in Iceland, political corruption and some very shady dealings. I am sure they only want the best for their business, but their reputation is in ruins.

Geysir Green Energy, will always be the company that brought the Reykjavik city council down, not once, but twice in one term. The people of Reykjavik and Iceland call that a political farce, but the serious side of the matter is still the dealings that brought the city council to its knees. Allegations of massive corruption such as bribes, having politicians in their pockets (payoffs or “sponsorship contributions”) and getting the best deal for taking no risk. Not a nice story.

The issue is described here in the Reykjavik Grapvine magazine article called City Hall: Theatre of the Absurd.

When this report came in about the Canadian company Magma Energy, under the leadership of Ross Beaty, are buying an Icelandic energy company in partnership with GGE, and buying it from the same town Reykjanesbaer (Reykjanes town) as some of the political bickering described by the Grapevine article described was involved in, it immediately raised questions for me at least. The mainstream media at least are happy to report that this company Magma Energy has bought 21 company in the first 14 months of its existence.  As it says on the company website:

Magma Energy Corp is a geothermal pure play focused on becoming THE pre-eminent geothermal energy company in the world.  We have institutional quality management, property portfolio and growth prospects. Since inception in early 2008 we have acquired one operating plant, four advanced stage projects and thirteen exploration projects — one of the largest geothermal portfolios of any company.

They have high ambitions. After the economic collapse in Iceland this sort of deals are even more suspicious. A company that has increased its share about 100 million dollars in just one year, and is very popular with stock brokers these days. It does raise questions. This fast growth is what got Iceland in trouble, and in fact the whole world. Then this company comes along, and after a very short Google search the name of the owner pops up for rather dubious reasons. A very interesting correspondence between Ross Beaty and Theodore Butler of Investment Rarites can be seen here.

Here is a shot quote from the article that appeared in the precious metal website 24hgold.com

What Mr. Beaty also doesn’t say is that this silver can never be returned to the lenders. How can it be? We are in a deficit as it is in silver, so how can 300 million ounces be taken from production, denied to industrial consumers and returned to the lenders? Mr. Beaty unintentionally to be sure, confirms the fraud of forward selling/leasing of silver unless he can provide a credible explanation of how the 300 million ounces can returned to the lenders.

One has to ask questions why the incredible will to sell off the natural resources to the company Geysir Green Energy and other foreign investors. It smells like 2007, and it looks like the neo-conservatist view that everything must be privatised is still the drive behind this deal.

There is quite a lot of debate on-line between Ross Beaty, Ted Butler and others. The result of my short investigation is that the sale is at the moment questionable. What happens to this company Magma Energy, its massive growth and big promises, it remains to be seen. I hope the politicians involved are not giving the energy away for future generations to pay for.

Advertisements

About this entry