Norsk Hydro: to close alumina refinery in Brazil

(CercleFinance.com) - Norwegian aluminium producer Norsk Hydro said on Wednesday that its Brazilian alumina refinery of Alunorte, in the north of the country, will be closed after being hit by extreme rainfall last winter.


The plant had operated at 50% capacity since March, when it was hit by flooding in the region, due to an embargo decided on by local regulators.

Environmental authorities suspected there was a spill from the bauxite residue areas, but internal and external reviews confirmed that there was no overflown or harmful spills from the February rain event.

"We will continue to work constructively with the authorities to lift the embargo and to resume operations in order to re-establish Alunorte as the world's leading alumina refinery," the group said.

Hydro said it was working in collaboration with unions to reduce the consequences for employees, while acknowledging that the decision will impact direct and indirect employees.

Also, the move will have significant operational and financial consequences, Hydro said, while stating that it is too early to determine the full impact.

The market clearly integrated this - the Hydro share, which is listed on the Oslo Stock Exchange was tumbling 11.7% today.



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