Singer-songwriter Bjork told BIV Friday morning that Vancouver’s Magma Energy Corp. (TSX:MXY) acted like a vulture by taking advantage of the country’s weak economic position when it acquired one of Iceland’s largest geothermal plants.
On September 3, Magma completed the acquisition of an additional stake in HS Orka, which produces 9% of Iceland’s energy.
As a result, Magma now owns a 98.53% stake in the HS Orka.
A Magma representative told BIV on Thursday that the company denies any wrongdoing in the deal and said that Magma’s expansion of HS Orka’s power plant will create jobs in Iceland.
The representative added that Magma could potentially sell a stake of HS Orka back to Iceland through one or more of the country’s pension plans.
Bjork said in an email interview that the whole affair isn’t just about Magma’s stake in the country’s energy supply.
“The nation needs to decide if we want to privatize the access of our energy resources,” said Bjork. “And if it does, we want healthy deals with healthy companies. Many people look at the deals that led to the [sale] of HS Orka as being of similar nature as the ones that led to the bank crash in Iceland.”
She said Icelandic politicians and venture capitalists are responsible for the country’s disastrous foray into international banking, which has crippled the Iceland’s economy.
She claims that the same politicians and investment firms are behind the sale of the Iceland’s energy assets.
“It seems like Magma saw an opportunity in Iceland’s weak position and came in like vultures,” she said. “Over the next four years [those responsible for Iceland’s banking crisis will be] found guilty and will be going to jail one by one.”
A government committee is reviewing Magma’s acquisition of HS Orka and the country’s stance on the privatization of its natural resources.
“So far 85% of the nation has said in polls that they don´t want to privatize the access to our energy resources,” said Bjork.
She noted that an online petition, which 10% of the nation has signed, is calling for the sale to be blocked and for a national referendum about energy privatization in Iceland.