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Hydro Alunorte issues force majeure after a 50% reduction in production

After determination by local, state and federal authorities in Brazil that the alumina refinery Hydro Alunorte would have to reduce its production by 50%, Alumina do Norte do Brasil AS (Alunorte), issued a force majeure warning this Friday (02 / 03), due to the cut in production and the lack of clarity about what measures would have to be taken for Hydro Alunorte to resume its normal operations.

The force majeure warning was issued after a period of intense rain that led to flooding in Barcarena, where Hydro Alunorte is located. Due to concerns about possible environmental impact by Hydro Alunorte during the flooding, the authorities took several measures against the refinery, including the determination to reduce the production of alumina and to suspend operations of the DRS 2 bauxite waste deposit.

Contingency plans are being implemented, and Hydro Alunorte is doing everything in its power to reduce the potential negative effect this may have on customers and suppliers.

Hydro, as Hydro Alunorte's largest alumina buyer, is evaluating and taking a number of possible actions to minimize the negative effect for its customers.

Hydro is the largest aluminum company in South America, following the acquisition of Vale's mining business in the state of Pará in 2011. Hydro Alunorte is the largest alumina refinery in the world and employs approximately two thousand employees, with a nominal capacity of 6.3 million tons per annum. Hydro owns 92.1% of Alunorte.

Facts about the situation at Hydro Alunorte

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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