Vale Transfers Amazon Aluminium JV Equity to Hydro

Vale of Brazil sells its equity in Amazon Aluminium Project, which is a Brazil-Japan joint venture of aluminium business, to Norsk Hydro of Norway. Vale and Hydro have already reached a basic agreement in the equity transfer and told the intentions to Nippon Amazon Aluminium, Japanese investing company for Amazon Aluminium. They are expected to conclude a formal contract soon. No negative effect is forecasted on Nippon Amazon Aluminium though the joint venture partner changes.

Hydro will succeed 51% equity in Albras, a joint aluminium smelter, and 57% equity in Alunorte, a joint alumina refinery, from Vale. Nippon Amazon Aluminium holds 49% shares in Albras and 5.4% shares in Alunorte. Hydro has already held 34% equity in Alunorte and, consequently, the total equity will reach 91%.

Hydro has no enough aluminium smelting capacity to meet its aluminium rolling capacity. The firm secures hefty resource through acquisition of Paragominas bauxite mine with 10 million tonnes of annual output capacity, which supplies 60% of requirement of Alunorte.