SEMAS determined that Hydro Alunorte reduce 50% of its calcined alumina production, requesting that the reduction be made by March 1st. In addition, the company will receive a daily fine of approximately 500 thousand reais, if it does not comply with the reduction within the stipulated period. Hydro Alunorte is currently preparing to meet the SEMAS requirement.
Contingency plans will be implemented to reduce the potential negative effect on customers.
"We are doing our utmost to limit the impact of this challenging situation on our employees, our customers and the communities around us", says President and CEO Svein Richard Brandtzæg.
Although it is still too early to assess the scale and impact of the cut in production, the reduction could have significant financial and operational consequences for the company. & nbsp;
The reason for the measures taken by SEMAS was the failure to comply with a determination by SEMAS, on 02/23/18, to reduce the levels of the basins of the DRS1 solid waste deposit at Hydro Alunorte in one meter of border until 02/26. By using additional pumps and increasing the water treatment capacity, the required one meter level was reached on 02/27. & Nbsp;