Hydro joins new alumina project in Brazil
Hydro and Brazilian mining company CVRD have signed an agreement to develop a new alumina refinery in northern Brazil, strengthening Hydro's future alumina supply. Hydro will hold a 20-percent share in the refinery.
The new refinery will be located close to Belém in the state of Para, approximately 5 km from Alunorte, the world's largest alumina refinery, owned 57 percent by CVRD and 34 percent by Hydro. The new plant is to be developed in four stages, each of 1.85 mill tons per year of alumina production and with a final output of 7.4 mill tons per year.
Investment cost in the first stage for the total project is preliminary estimated at USD 1.5 billion.
Construction is expected to begin mid 2008, following an anticipated final build decision in first quarter next year. Production start-up is scheduled for the first half of 2011, and the plan calls for a staged development of the remaining capacity increases. Hydro will have the right to participate with the same share in all future expansions.
Bauxite for the new refinery will be delivered by CVRD from its operation in Paragominas, in Para, through capacity in the existing bauxite slurry pipeline, currently partly supplying Alunorte.
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