The agreements consist of a Conduct Adjustment Term (TAC) signed between Alunorte - Alumina do Norte do Brasil SA, Norsk Hydro do Brasil Ltda., the Federal Public Ministry (MPF), the Public Ministry of the State of Pará (MPPA) and the Government of the State of Pará, represented by SEMAS, State Secretariat for the Environment and Sustainability. Additionally, a Term of Commitment (TC) was signed between Alunorte and the Government of the State of Pará.

“This is a step on the way to resume normal operation at Alunorte. We are fully committed to the initiatives defined in the agreements signed with the Government of Pará and the Public Ministry, which are in addition to the measures we are already implementing. This will contribute to the continued security of Alunorte's operations ”, says the executive vice president and leader of the Bauxite & amp; Hydro's Alumina, John Thuestad.

The TAC encompasses technical improvements, refinery audits, studies and the payment of coupons for the purchase of water and food for families living in the Murucupi River basin area, while the TC gathers additional efforts and investments related to social development of communities in Barcarena.

Alunorte is currently under embargoes imposed by the authorities and has operated at 50% of its capacity since March.

None of the agreements includes provisions or establishes a deadline for resuming normal operation at the refinery, however Hydro understands that these terms are an important step in enabling the resumption of operations and the preservation of jobs at Alunorte, as well as at Mineração Paragominas and at Albras.

Internal and external audits confirm that there was no leakage or overflow of the bauxite waste deposits and there is no evidence of contamination resulting from the February rain event.

By signing the agreements, the company reaffirms its commitment to sustainable development in Barcarena, seeking engagement and partnerships with communities, authorities, academia and civil society.

“Our commitment to local communities has been strengthened through dialogue and an open door policy. We are committed to contributing and making a difference in the society in which we operate and to be a partner for local development ”, says John Thuestad.

Main points of the agreements

Term of Conduct Adjustment

The TAC includes audits and studies, improvements to the Industrial Effluent Treatment Station (ETEI) to increase its capacity and a study of the project's drainage system, among others. The implementation of the initiatives will be monitored by a monitoring committee with the participation of civil society.

Alunorte estimates that the investments and costs related to the improvements and audits provided for in the TAC are R $ 60 million.

Additionally, R $ 65 million will be paid in coupons for the purchase of food and water for families living in the area of the Murucupi river basin.

According to the agreement, Alunorte will also pay fines related to the February 2018 events and the 2009 event, totaling approximately R $ 33 million.

TAC's total investments and costs are estimated at approximately R $ 160 million and Alunorte will present a financial guarantee of R $ 250 million to ensure compliance with the terms of the TAC.

The measures provided for in the TAC are in addition to the investment already announced and in progress in Alunorte's water treatment system, improving the plant's robustness to withstand future changes in climatic conditions.

Term of Commitment

Alunorte is committed to investing up to R $ 150 million in projects that support sustainable urban development in communities close to the refinery. The State Government of Pará and Alunorte will develop projects for housing and urban infrastructure. Alunorte will be responsible for the execution of construction projects, which will be donated to the State Government, which will assume future responsibilities related to management and use.

This amount is in addition to the already announced commitment of R $ 100 million in investments in the local community through the Barcarena Sustainable Initiative.

Link to the full agreements will be published on Hydro.com when available

History

On February 16 and 17, the city of Barcarena, where the Alunorte alumina refinery is located, was hit by extreme rains that extended over the following days, causing flooding in the region.

Internal and external audits confirm that there was no leakage or overflow of the bauxite waste deposits and there is no evidence of contamination resulting from the February rain event.

Since March 1, Alunorte has been operating with a 50% reduction in its capacity as determined by the courts, which accepted SEMAS 'request. Consequently, the Paragominas bauxite mine and Albras also reduced their production by 50%.

Both the refinery and the mining company granted collective vacations to around 1,000 employees to mitigate the impacts of reduced activities. In July, Mineração Paragominas had to temporarily suspend the employment contracts of 80 employees and reduce 175 outsourced positions.

About Alunorte

Alunorte, located in Barcarena, Pará, is the largest alumina refinery in the world, with a nominal production capacity of 6.3 million tons per year, generating around 2,000 direct jobs. Hydro owns 92.1% of Alunorte.