According to the latest update, Norsk Hydro has completed the transaction of US$1.11 billion with Glencore for the sale of 30 per cent interest in Alunorte alumina refinery and 5 per cent interest in Brazilian bauxite producer and exporter Mineracão Rio do Norte (MRN).
The transaction also includes the sale of an additional 40 per cent stake in MRN, which Hydro had to purchase first and then sell to Glencore on the condition that it would no longer have an ownership position in MRN.
Around mid-November, the companies received unconditional approval from relevant competition authorities, including Brazil, China, Germany, and Austria, for the partnership over Alunorte and MRN acquisition.
“We are looking forward to work with Glencore to further develop Alunorte. Glencore has broad industrial experience within metals and mining, which adds to the significant progress our bauxite and alumina area has made to bring down the footprint of alumina production. This enables Hydro to strengthen our position in low-carbon aluminium,” said President and CEO Hilde Merete Aasheim.
Hydro and Glencore will jointly work on reducing carbon emissions from Alunorte by substituting fuel oil with LNG and electrifying boilers. This move will bring Alunorte to the first decile on the global carbon curve by 2025.
Hydro and Glencore are also committed to developing social projects to improve the lives and livelihoods of nearby communities.
"This transaction is an important step to deliver on Hydro’s strategy. Alunorte remains a core strategic asset for Hydro and is a key source of low-carbon alumina supply to our primary aluminum smelters,” said Aasheim.
Hydro, however, remains the largest shareholder of Alunorte even after the sale by owning 62 per cent of the stake. Glencore owns 30 per cent of Alunorte, while the remaining 8 per cent is collectively possessed by four minority shareholders.
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