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The Brazilian state of Para lifted the production embargo on the Norsk Hydro ASA’s Alunorte alumina refinery. The Norwegian aluminum maker's ADR $NHYDY rose about 1.5% on the news.

Norsk Para Damage

Red mud flowing from the Hydro Alunorte compound after the flood. photo: internet reproduction (Rio Times)

Para’s Secretariat of Environment and Sustainability issued a note lifting its embargo and saying normal operations can resume, Hydro said in a statement.

The shares rose on hopes that the company closer to resuming full output at the plant. The plant is the world’s largest alumina refinery, at full capacity the plant can produce around 6.4 million tonnes of alumina, or 10 percent of the world’s capacity outside China. It has been operating at half capacity since early 2018 after Hydro admitted making unlicensed emissions of untreated water during severe rains.

Para state’s lifting of its embargo is a positive development but the company said full production would not resume until a Brazilian federal court confirms the decision.  Production is most likely not going to resume until the second half of 2019.

Mr John Thuestad, Hydro’s executive vice president for bauxite and alumina said that “We will continue the dialogue with the authorities pursuing full resumption of production.” Hydro said that “Alunorte will inform the (Brazilian federal) court about SEMAS decision.”

About Hydro Alunorte

Hydro Alunorte is the world's largest alumina refinery and is located in Pará, Brazil, more specifically in the industrial park of Barcarena. After 20 years in operation, the company supplies the domestic and international markets. On average, 14% of its production goes to the domestic market and the other 86 % goes for export.

Currently, Hydro Alunorte exports its products to ten countries in the Middle East, North America and Europe. Since it was inaugurated in 1995, the refinery has undergone three expansions that increased its production capacity, all of which were implemented without any production downtime. Today, the company generates more than 4,400 direct and indirect jobs, mostly for citizens of Pará. via Hydro Norsk

Source : Reuters, Hydro Norsk

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