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Norsk Hydro: Hydro and Vale conclude negotiations for a 40% stake in MRN

Hydro and the Brazilian mining company Vale concluded negotiations on the possible acquisition of a 40% stake in Vale in Mineração Rio do Norte (MRN), a bauxite producer in Brazil. The two companies submitted a letter of intent (LoI) on the possible operation in October 2015, but were unable to reach an agreement in commercial terms.

Hydro will continue to hold 5% of MRN, as well as to purchase bauxite from Vale according to the commercial agreements signed in 2011.

Hydro acquired other Brazilian aluminum assets from Vale in 2011, including 57% stake in the Alunorte alumina refinery, the Paragominas bauxite mine, a 51% stake in the Albras smelter and its 61% stake in the project the CAP alumina refinery, all located in the State of Pará. & nbsp; The 2011 agreement also included Vale's bauxite offtake commercial agreements with MRN.

MRN is located in the westernmost part of the State of Pará, the site of Hydro's other Brazilian operations, with Brazil being one of the world's largest producers of bauxite. In operation since 1979, MRN currently employs approximately 1,400 employees and a significant number of contracted companies. MRN's current shareholders are Vale (40%), Alcoa (18.2%), South 32 (14.8%), Rio Tinto (12%), CBA (10%) and Hydro (5%).

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