Icelandic megastar Björk aims to save Iceland's energy resources.

• Iceland probes energy company takeover
• Björk and CEO in public spat over Iceland energy

Björk, Iceland's megastar and most famous citizen, is on a new mission: to save her Nordic state's natural resources from vulturish investors she says are ready to feed off Iceland's wounded economy.

The 44-year-old singer, songwriter and actress has launched her campaign with the same passion that infuses her art, be it the quirky music that straddles avant-garde and pop or the soulful acting that won her Best Actress in Cannes in 2000 for "Dancer in the Dark".

Her first target?

Canada's Magma Energy, which has taken steps to acquire HS Orka, a power company using one of the island's most valuable natural resources: geothermal energy.

Iceland's abundant geothermal and hydropower sources have drawn foreign investment, notably in the aluminum sector, a key export.

But if the Orka sale goes through, Björk has told the Icelandic press she fears it could pave the way for international firms to acquire Iceland's water rights and other resources simply "to make an easy profit."

The Canadian group is "checking out if they could buy out all Iceland's energy sources," the artist charged in an interview with AFP in Helsinki this week, saying the company has "already shown interest in buying up at least five other energy companies in Iceland."

The firm denies the claim.

"We are aiming at only one stake in one power company," the head of Magma's Icelandic division, Asgeir Margeirsson, told AFP on Tuesday, insisting "the current debate is full of misleading and incorrect information."

Opponents accuse Magma of exploiting the aftermath of Iceland's near economic collapse in late 2008 when its major banks went belly-up, leaving the state and its citizens vulnerable and facing mountains of debt.

Magma "has a reputation of working with the IMF (International Monetary Fund) and buying up the energy sources of countries on the verge of bankruptcy," Björk charged.

Again, Magma denies the claim.

"The comment about Magma working closely with the International Monetary Fund is false. Magma has received no funding from the IMF," head of the company's corporate communications in Canada, Alison Thompson, told AFP in an email Tuesday.

Despite a growing outcry, the Canadian firm acquired around 44 percent of shares in Orka -- the country's largest privately owned power company using geothermal sources -- and struck a deal in May to buy 55 percent more from Geyser Green, which would bring its stake to about 99 percent.

That's when the pop maverick joined the fight, condemning the takeover in open letters to the media.

In July, she called a press conference urging a referendum on foreign ownership of energy resources and greater transparency about Orka.

Magma was to finalise the deal in late July but was forced to hold off when Iceland's leftwing coalition government -- as several deputies threatened to quit if the sale went through -- announced a probe into the takeover.

The firm's chief executive Ross Beaty has now challenged Björk to "put her money where her mouth is" and buy shares in Orka to secure its future.

"You totally miss my point," the singer shot back.

"I feel this company should not be privatised, it should be given back to the people," she said in comments on the website of the Reykjavik Grapevine, an English language magazine.

Opponents say Magma circumvented a law that prevents firms from outside the European Economic Area owning a local power group by setting up a Swedish company to buy HS Orka.

Prime Minister Johanna Sigurdardottir now says she wants to restore public ownership of Iceland's power groups.

But Margeirsson insisted Tuesday the deal was still on and would be concluded "hopefully in a few days".

"As the law is now ... privatisation is allowed and foreign investments are allowed," he said, insisting Magma's deal "fulfills the provisions of the law."

The Canadian firm has agreed to pay 10.56 billion kronur (87 million dollars, 67 million euros) and assume 6.29 billion kronur in debt to obtain Geysir Green Energy's shares. With full control of Orka it will gain usage rights of Iceland's geothermal energy sources for 65 years, with the possibility to renew for another 65 years.

Björk is angry, fearing the deal could only make Iceland more vulnerable.

"The down-payment should be larger and 130 years (of usage rights) is ridiculous," Björk told AFP.

And "we already have aluminium smelters. We don't need more," the singer said in reference to Magma's plan to use Orka, which sells much of its energy to a large aluminium smelter, to provide power to yet a new one.

"We need green options (like) greenhouses, but the government doesn't give discounts for energy access to greenhouses (as) it does to these foreign giants."

"Economists agree that there should be diversity," she said, noting if the price of aluminium were to fall, Icelanders would again suffer.

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