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FACTS about Hydro and alumina, bauxite and energy
 NEW: Hydro Aluminium Sunndal (Photo: Atle Johnsen) |
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(Dec. 3, 2002) Alumina and electricity are the main input factors in the production of primary aluminium.
- Alumina, or aluminium oxide, is the largest single cost in connection with aluminium production. Top quality alumina is required to produce quality metal with low environmental impact.
- Hydro wants to ensure satisfactory access to alumina through ownership. The company is at present involved in the production of alumina in Brazil, Jamaica and Germany. Alumina is produced from bauxite. Hydro has access to bauxite in Brazil, Guinea and Jamaica.
- Alunorte in the north of Brazil forms the core of Hydro's alumina production. Hydro has an ownership stake of 25.3 percent in what is one of the most modern and efficient alumina refineries in the world. Hydro is involved in an extension that will increase the plant's annual capacity from 1.6 to 2.5 million tonnes. When this is completed, Hydro will own around 34 percent and will have access to around 850,000 tonnes alumina per year.
- Through Alunorte Hydro has a direct ownership stake of five percent in the bauxite mining company MRN in Trombetas in Brazil. Alunorte may expand further, which would increase deliveries to Hydro in the future.
- Hydro also owns 35 percent of the alumina plant Alpart in Jamaica and 50 percent of Aluminium Oxid Stade in Germany. The total capacity of these two plants is around 2.4 million tonnes, 950,000 tonnes of which are Hydro's share.
- Hydro's present alumina production meets just less than half of its requirement. The rest is secured through market contracts.
- In Norway Hydro Aluminium purchases electricity from Hydro Energy, which has considerable production in addition to long-term agreements with Statkraft. A competitive energy price, including all forms of charges, is essential for profitable aluminium production. Developments in energy prices in Europe may make it difficult to argue for major new investments in aluminium production in Europe in the future.
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