In particular the star attacked plans to build two more aluminium smelters to add to three already up and running on the island nation, which has been among the hardest hit by the financial turmoil.

"A lot of Icelanders are against the building of these smelters. They would rather continue to develop smaller companies that they own themselves and keep the money they earn," she wrote in an opinion piece for The Times newspaper.

"Usually I don't notice politics. I live happily in the land of music-making. But I got caught up in it because politicians seem bent on ruining Iceland's natural environment," she added.

Bjork, who sang at the opening ceremony of the 2004 Athens Olympic Games, is known for her outspoken views on environmental and other issues including Tibet, which has got her into hot water with Chinese authorities.

Lamenting that her country's government had allowed firms like Alcoa and Rio Tinto to exploit Iceland's natural energy, she said the plans to build more aluminium smelters were unworkable in the long term.

"The smelters would need energy from a handful of new geothermal power plants and the building of dams that would damage pristine wilderness, hot springs and lava fields.

"To take this much energy from geothermal fields is not sustainable," she wrote.

Iceland's once booming financial sector has collapsed under the weight of the worldwide credit crunch, forcing the government to take control of the major banks as its currency has nosedived.

"We are facing a disaster from betting everything on finance. If we build two more aluminium smelters, Iceland would become the biggest aluminium smelter in the world... It would leave little room for anything else. If the price of aluminium falls -- as it is doing -- it would be catastrophic," said Bjork.

And she said: "Iceland can be more self-sufficient and more creative -- and still have an approach that is more 21st than 19th century. It can build fewer, smaller and greener dams.

"Let's use this economic crisis to become totally sustainable. Teach the world all we know about geothermal power plants. Support the Icelandic seed companies. Support the grass roots.

"It may take longer to build and deliver profits but it is solid, stable and something that will stand independently of the rollercoaster rides of Wall Street and volatile aluminium prices.

"And it will help Iceland to remain what it is best at: being a gorgeous, untouched force of nature."

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