Norsk Hydro: Alunorte issues force majeure notice following 50% production cut

Following orders from federal, state and local authorities in Brazil for the Alunorte alumina refinery to reduce production by 50 percent, Alumina do Norte do Brasil SA (Alunorte) issued a force majeure notice on Friday due to the production cut and current lack of clarity into what measures it would take to return Alunorte to normal operations.

The force majeure notice comes after a period of extraordinary rainfall led to flooding in Barcarena, where Alunorte is situated. Due to concerns over possible water contamination from Alunorte during this flooding, authorities have taken several measures against the alumina refinery, including orders to cut alumina production and halt operations at its DRS2 bauxite residue deposit.

Contingency plans are being implemented, and Alunorte is doing its utmost to reduce the potential negative effect on customers and suppliers.

Hydro, as the largest offtaker of alumina from Alunorte, is taking and assessing a range of possible mitigating actions to minimize the negative effect for its customers.

Hydro is South America's biggest aluminium company after acquiring Brazilian mining company Vale's aluminium assets in the state of Pará in 2011. Alunorte is the world's largest alumina refinery, employs around 2,000 people and has a nameplate capacity of an annual 6.3 million tonnes. Hydro owns 92.1 percent of Alunorte.

Investor contacts
Stian Hasle
+47 97736022
Stian.Hasle@hydro.com

Press contact
Halvor Molland
+47 92979797
Halvor.Molland@hydro.com

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