Iceland denied a request by a Chinese property tycoon to purchase a

Iceland denied a request by a Chinese property tycoon to purchase a large swathe of land in the northern part of the island for a tourist resort, Interior Minister Oegmundur Jonasson said.

The refusal was unexpected, coming two weeks after Iceland’s economic affairs ministry said it was favorable to Huang Nubo’s plans and recommended the interior ministry approve the request.

Huang Nubo had asked the Icelandic government in late August for permission to buy 300 square kilometres (200 square miles) of Icelandic wilderness to build a resort, since the land is partly owned by the government and approval is required for a non-resident of the European Economic Area to buy land.

Huang, whose property company Zhongkun Group owns resorts and tourist facilities across China and the world, offered to buy the land known as Grimsstadir a Fjoellum for $10 million and wanted to invest about $200 million (147 million euros).

He said he wanted to build a luxury resort with a hotel, golf course and sports facilities, and Europe’s biggest nature reserve.

Friday’s decision is final and cannot be appealed, the minister said.

Icelandic observers had suggested that Huang’s purchase could help Beijing get a foothold in the Arctic region, as the melting ice cap means lucrative oil and gas deposits under the seabed could soon become accessible and shorter shipping routes open up.

Source AFP