CAP alumina project postponed

Companhia de Alumina do Para’s (CAP) Board of Directors has decided to postpone the construction of a new alumina refinery in Barcarena, Brazil.

March 14, 2012

The main reasons for the postponement of the CAP project are the uncertainty related to short- and medium-term aluminium supply/demand balance and the development in the world economy.

The new alumina refinery, supplying raw material for aluminium production was scheduled to start production in 2015 based on bauxite supply from an expansion of Hydro’s mining operations in Paragominas, Brazil.

Companhia de Alumina do Para is owned by Hydro (81 percent) and Dubal (19 percent).

“The decision to postpone the CAP project does not reflect any changes in our-long term faith in the market for alumina and aluminium or the CAP project. Economic developments in a number of countries, not least in Europe, have led to lower production volumes than expected at our customers,” says Executive Vice President Johnny Undeli, head of Hydro’s bauxite and alumina operations.

Certain statements included within this announcement contain forward-looking information, including, without limitation, those relating to (a) forecasts, projections and estimates, (b) statements of management's plans, objectives and strategies for Hydro, such as planned expansions, investments or other projects, (c) targeted production volumes and costs, capacities or rates, start-up costs, cost reductions and profit objectives, (d) various expectations about future developments in Hydro's markets, particularly prices, supply and demand and competition, (e) results of operations, (f) margins, (g) growth rates, (h) risk management, as well as (i) statements preceded by "expected", "scheduled", "targeted", "planned", "proposed", "intended" or similar statements.

Although we believe that the expectations reflected in such forward-looking statements are reasonable, these forward-looking statements are based on a number of assumptions and forecasts that, by their nature, involve risk and uncertainty. Various factors could cause our actual results to differ materially from those projected in a forward-looking statement or affect the extent to which a particular projection is realized. Factors that could cause these differences include, but are not limited to: our continued ability to reposition and restructure our upstream and downstream aluminium business; changes in availability and cost of energy and raw materials; global supply and demand for aluminium and aluminium products; world economic growth, including rates of inflation and industrial production; changes in the relative value of currencies and the value of commodity contracts; trends in Hydro's key markets and competition; and legislative, regulatory and political factors.

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Updated: October 11, 2016