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Hydro declares stronger warning due to production problems at MRN

Hydro issued a force majeure notice to its bauxite customers, as Hydro will not receive the total contracted volumes from its supplier, MRN, due to lower production at the bauxite mine. This will affect Hydro's bauxite deliveries to its customers.

MRN, in which Hydro has a 5% stake and an agreement to take 40% of the bauxite from these operations, is facing problems with the water shortage rejection systems. The lack of water is caused by a very dry period in the region. This is expected to reduce bauxite production from an expected level of 17-17.5 million tonnes to about 15-15.5 million tonnes in 2017.

As the drop in production is mainly related to dry bauxite for the export market, production at the Alunorte refinery is not expected to be affected.

MRN has a nominal capacity of around 18 million tons and is one of the largest bauxite mines in the world.

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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