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Hydro signs a protocol of intentions with Vale to increase its stake in MRN to 45%

Hydro signed a memorandum of understanding with the mining company Vale for the possible acquisition of Vale's 40% stake in the bauxite producer Mineração Rio do Norte (MRN), an acquisition that would strengthen Hydro's global position as an important player in the bauxite and alumina industry.

A possible agreement will depend on the terms agreed between the two companies for the acquisition of 40% of Vale in MRN, a prior audit and the approval of the management of the two companies, in addition to the approval of the competent competition authorities. The two companies will try to receive support from the other shareholders so that the transaction is carried out in accordance with the terms of the shareholders' agreement. 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 located in the western region of the State of Pará, home to other Hydro operations, being the largest bauxite mine in Brazil and one of the largest bauxite producers in the world. In operation since 1979, MRN currently employs 1,400 people and has a significant number of contractors.

MRN is a well-operated mining company, with a competitive cost position due to the high quality of the bauxite it produces, an attractive sterile / ore ratio and the benefits of economies of scale because of its 18 million tonne production per year. In addition to mining licenses covering a total area of 143,000 hectares, operations include mining infrastructure and equipment, the Porto Trombetas village, railroad, warehouse, beneficiation plant, waste management system, dryers, port and mining facilities. power generation.

Hydro acquired some of Vale's aluminum business in 2011, including 57% of the shares in the Alunorte alumina refinery, the Paragominas bauxite mine, 51% of the shares in the Albras plant and 61% of the shares in the refining project CAP alumina, all located in Pará. The 2011 agreement also includes commercial agreements for the purchase of bauxite owned by Vale in the company MRN.

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

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