Hydro ordered to cut production by 50% at Alunorte alumina refinery

Hydro has been told by the Secretariat of Environment and Sustainability in the Brazilian state of Pará (SEMAS) to cut production by 50 per cent at its Alunorte alumina refinery due to non-compliance relating to bauxite residue deposit.

SEMAS also said it would introduce daily fines of around BRL 1 million until Alunorte alumina refinery reached a freeboard of at least 1 meter in the bauxite residue deposit DRS1.

Hydro said While it is too early to determine the size and impact of the resolution, it could potentially have significant operational and financial consequences.

SEMAS said it plans to order the Paragominas bauxite mine to suspend operations at one of two tailing dams at the plant. Hydro owns 92.1 percent of the Alunorte alumina refinery and 100 per cent in the Paragominas bauxite mine.

Hydro CEO Svein Richard Brandtzæg said: “We have taken considerable measures to meet the deadline at Alunorte, and we will continue with full force to make sure that we comply with expectations and requirements.”

"We will continue our dialog with local authorities to ensure that we take all necessary steps to ensure safe and sound operations – with respect for people, the environment and for the local communities that we are a part of,” Brandtzæg said.

In its press release, Hydro said:  “The resolution by SEMAS came after Brazilian environment minister José Sarney Filho expressed similar concerns during a press conference on Monday evening local Brazilian time, calling on the Brazilian Institute of the Environment and Natural Resources (IBAMA) to implement any necessary mitigating actions to remedy the worries about a possible water contamination in the local area, including fines or a possible suspension of activities at Alunorte.”