The uncertainty about the balance between aluminum supply and demand in the short and medium terms and the developments in the world economy are the main reasons for the postponement of the CAP project.
The new alumina refinery, a supplier of raw material for the production of aluminum, was scheduled to start producing in 2015 using bauxite from an expansion at the Hydro mine located in the Pará municipality of Paragominas, Brazil.
The Companhia de Alumina do Pará is owned by Hydro (81%) and Dubal (19%).
“The decision to postpone CAP does not imply a change in our long-term confidence in the project-related alumina and aluminum market. Economic challenges in several countries and regions of the world, such as in Europe, have resulted in lower production volumes than those expected by our customers ”, says Executive Vice President Johnny Undeli, responsible for Hydro's Bauxite and Alumina operations.
CAP partners will carefully monitor market behavior in order to plan the resumption of the project in due time.