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Iceland lies on the mid Atlantic ridge.

This is a constructive plate boundary where 2 oceanic tectonic plates are moving away from each other.

Magma is constantly brought to the surface which cools to form igneous rocks.

Obviously the world is not constantly growing with this new addition of crust.

As new crust is created at the ridge, crust at the other end of the plate is destroyed through a process known as subduction.

Like a conveyor belt with production in the middle and destruction at the edges.

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Q: Why is Iceland almost made entirely of igneous rock?
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