Hydro and Brazilian mining company CVRD have signed an agreement to develop a new alumina refinery in northern Brazil to strengthen Hydro’s future alumina supply.
Hydro will hold a 20 percent share in the new refinery which will be located close to Belém in the state of Para. Approximately 5km from Alunorte, it will be situated in close proximity to the world’s largest alumina refinery, which is 57 percent owned by CVRD and 34 percent owned by Hydro.
The new plant is to be developed in stages and will eventually have an output of 7.4m tons of alumina per year. The Investment in the first stage of the project, which will see the plant produce around 1.85m tons of alumina per year, is estimated to be around $1.5bn.
Construction is expected to begin mid 2008, following a final build decision in first quarter of 2008. Production start-up is scheduled for the first half of 2011.
Bauxite for the new refinery will be delivered by CVRD from its operation in Paragominas, in Para.