Norsk Hydro: Alunorte To Resume Production At Half Capacity

(RTTNews) - The Alunorte alumina refinery has agreed with the environmental agency of the state of Pará, SEMAS, to resume production at 50 percent capacity under SEMAS' supervision. This follows the exceptional authorization by federal environmental agency IBAMA late on Friday to utilize the state-of-the-art press filter technology to process bauxite residues. Alunorte is expected to be able to ramp up to 50 percent production within two weeks.

Alunorte has been operating at half capacity since March after state environmental authorities and the court ordered the alumina refinery to reduce production by 50%, federal environmental authorities ordered to stop commissioning of the new bauxite residue area (DRS2) and the press filter and the court also ordered to stop commissioning of the DRS2.

As a consequence, Alunorte has been limited to disposing bauxite residue in the old DRS1 disposal area using less efficient drum filters. Last week, external geotechnical experts recommended that the use of DRS1 based on drum filter processing should be discontinued.

DRS1 is already in the process being reshaped as a first step for the area to be closed and rehabilitated. By using the press filter technology for the reshaping process, Alunorte is able to safely continue depositing bauxite residue in DRS1 while awaiting approval to use DRS2. The new press filter creates stackable residue with considerably less water content than the drum filter.

In addition to Alunorte resuming operations at half capacity, the decision will allow Hydro's Paragominas bauxite mine to restart deliveries to Alunorte at 50 percent capacity. Hydro's joint-venture smelter Albras, situated next to Alunorte and fully dependent on alumina supplies from the refinery, will be able to continue producing 230 000 tonnes per year, half of its annual capacity of 460 000 tonnes.

Hydro said it continues its dialog with all relevant authorities to bring Alunorte back to full production and normalize its operations in Brazil.