By Dominic Chopping

Norwegian aluminum producer Norsk Hydro ASA (NHY.OS) has signed a letter of intent to buy a further 40% in Brazilian bauxite producer Mineracao Rio do Norte (MRN), in a deal that would see Hydro's stake in the company rise to 45%.

The proposed deal involves Hydro buying Brazilian miner Vale S.A.'s (VALE) 40% stake in MRN, though terms of the deal are yet to be agreed.

Hydro is seeking support for the deal from the other MRN shareholders, including Alcoa Inc. (AA) who has an 18.2% stake and Rio Tinto PLC (RIO) who holds 12%.

MRN is based in the westernmost part of the state of Para, home to Hydro's other Brazilian operations, and is one of the world's largest producers of bauxite, it said. In operation since 1979, MRN employs around 1,400 employees and a significant number of contractors. It produces 18 million metric tons of bauxite a year.

-Write to Dominic Chopping at dominic.chopping@wsj.com; Twitter: @WSJNordics

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(END) Dow Jones Newswires

October 09, 2015 02:49 ET (06:49 GMT)

Copyright (c) 2015 Dow Jones & Company, Inc.
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