Skip to content

Hydro with a letter of intent to increase the share of MRN to 45 percent

Hydro and the Brazilian mining company Vale have signed a letter of intent (LoI) regarding the possible acquisition of Vale's 40 percent stake in the Brazilian bauxite producer Mineração Rio do Norte (MRN). This would strengthen Hydro's global position as a long-term player in the bauxite and alumina industry.

A possible contract is subject to the partners agreeing on the terms for the acquisition of Vale's 40 percent stake in MRN, Hydro's due diligence review, and board approval in both companies and the relevant competition authorities. The parties also seek support for the transaction from other MRN shareholders and will proceed in accordance with the terms of the agreement between the shareholders. MRN's current shareholders are Vale (40%), Alcoa (18.2%), South 32 (14.8%), Rio Tinto (12%), CBA (10%) and Hydro (5%). p>

MRN is the largest bauxite producer in Brazil and one of the largest in the world. The mine is located in the western part of the State of Pará, where Hydro's other Brazilian operations are also located. MRN has been in operation since 1979 and currently employs approximately 1,400 people and a significant number of contractors.

MRN is a well-run mining company with a competitive cost position thanks to the high quality bauxite, an attractive overburden ratio and economies of scale from the production of 18 million tons per year. In addition to the mining licenses for a total of 143,000 hectares, the activities include infrastructure and operating resources of the mine, the settlement of Porto Trombetas, railways, warehouses, processing plants, disposal systems, dryers, ports and power generation plants.

Hydro acquired Vale's aluminum business in 2011, including 57% of the Alunorte alumina refinery, Paragominas bauxite mine, 51% of the Albras smelter and 61% of the CAP alumina refinery project, all located in the state of Pará . The 2011 contract also included an agreement to purchase Vale's bauxite in MRN.

This text is machine translated. To view the original German text, click on DE on the top right of this window

Recommended for you