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Norwegian Aluminum maker Norsk Hydro announced yesterday temporary shutdown of its Alunorte, Brazil refinery- the world’s largest alumina refinery. The decision comes in the wake ofthe bauxite residue deposit area 1 (DRS1) fast approaching its end of life. According to company sources, the shutdown process has already been initiated. The disruption of the plant is expected to add to the uncertainty in global aluminum market, resulting in higher prices.
The Alunorte refinery has been running at half of its capacity since March this year, following imposition of official ban by Brazilian authorities. The ban prohibited the company from utilizing the new bauxite residue deposit area (DRS 2) as well as the revolutionary press filter technology for depositing bauxite residue, which takes lesser storage space and reduces environmental footprint substantially.
The shutdown of Alunorte refinery will have immediate impact on the Paragominas bauxite mine, which also will see 100% curtailment of operations. The closure of Alunorte and Paragominas is feared to impact employees at both the plants, amidst efforts by the company to minimize the consequences. The potential operational and financial implications of the closure are yet to be evaluated.
Meantime, John Thuestad, EVP Bauxite & Alumina said that constructive efforts will be made to get the official ban lifted, so that Alunorte could be re-established as the world’s leading alumina refinery.