Hydro Paragominas Bauxite pipeline in Brazil paused for extended maintenance, production at Alunorte to shrink

Hydro has paused operation of 244 kilometer long pipeline transporting bauxite from Hydro’s Paragominas bauxite mine to the Alunorte alumina refinery for extended maintenance, temporarily suspending production at the mine.

Hydro had scheduled the replacement of two sections of the pipeline in Q3 and Q4 of 2020, as part of the long-term maintenance plan for the pipeline. During the planned maintenance work in Q3, it was discovered that a section of the pipeline had deteriorated faster than expected. Based on a technical assessment, it was decided today to extend the maintenance and replace this section of the pipeline earlier than initially scheduled.

The halt in bauxite supply will effect in curtailment of production at Alunorte alumina refinery which is considered as the world’s largest alumina refinery outside China.

Alumina production at Alunorte will be reduced, expected to a level between 35-45% of full capacity, to balance bauxite inventories. The reduced production will impact the financial results for Q3 2020.

The work will initiate immediately, and operations are expected to resume within two months.

Hydro is taking all necessary measures to mitigate any customer impact.