Brazil federal court lifts remaining production embargo on Hydro¡¯s Alunorte alumina refinery

A Brazilian federal court has lifted remaining production embargo on Hydro Alunorte alumina refinery under the criminal lawsuit on Monday, May 20, allowing Alunorte to resume full production. Alunorte refinery currently operates at 50% capacity.

The embargo on the new, state-of-art bauxite residue disposal area (DRS2) remains in force.

The alumina refinery is expected to reach 75-85% percent utilization within two months. An additional press filter is expected to be operational in the third quarter of 2019, further increasing the capacity, Hydro said through its press release.

“Production at Hydro’s Paragominas bauxite mine will be increased in line with the ramp-up speed at Alunorte. A decision to also increase production at Hydro’s part-owned Albras primary aluminium plant is expected shortly,” Hydro said.

“I am pleased and encouraged to see the great efforts by our people at Alunorte, Albras and Paragominas, in cooperation with local communities and authorities. Resuming production at Alunorte is an important step towards normal production at our strategically important operations in Para and a foundation for our agenda to strengthen the robustness and profitability across the value chain,” says President and CEO Hilde Merete Aasheim.

The federal court had lifted one of two production embargoes on Alunorte under the civil lawsuit on Wednesday, May 15.

John Thuestad, Executive Vice President of the Bauxite & Alumina business area said: “This decision is very important to our employees, local communities, contractors and customers. It is the final confirmation that Alunorte can operate safely and means we will restart the full aluminium value chain, which is positive both for us and the state of Pará. We will focus on ramping up in a safe manner, following several months of disrupted operations, as well as continue working to also lift the embargos on the new, state-of-art bauxite residue deposit area.”

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