Iceland resort deal might see progress

After waiting for nearly two years, the chairman of Beijing-based Zhongkun Investment Group, Huang Nubo, said he is looking forward to a breakthrough in April on his deal to buy land in Iceland, while admitting that he might abandon the deal by May if it stalls.

"There will be very likely a favorable turning point on the deal in April," Huang said on Tuesday, referring to his planned purchase of 300 sq km of land in the country.

But he said he isn't willing to wait indefinitely for an approval.

"If I get nothing clear and final from Iceland's government by the end of May, I won't be interested in pursuing the project," Huang said. "I'll let it go."

Huang announced the plan in August 2011 — after an invitation from local landowners — for a high-end resort with a hotel and golf course. He plans to invest about $200 million.

The plan was rejected by Iceland's government in November 2011, but was resumed in May 2012, with Huang only allowed to rent the land.

Along the way, the plan has met some resistance.

On Saturday, The New York Times ran a story, with quotes by Icelandic ministers questioning the project.

Even though Huang's business plan was deemed to be "sensible" and "convincing", the land — in the country's northeast — is said to be "a place so isolated that you can almost hear ghosts dancing in the snow".

The report also questioned Huang's intentions behind the project, suggesting that the businessman wants to secure "a strategic foothold" in the country.

Huang shrugged off the questions raised by the story. "They're demonizing a simple business move," he said.

"I made the decision based on a business forecast, because I believe in Iceland's development. I'm a businessman. If the area didn't have potential I wouldn't be willing to invest."

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