NHYDY Norsk Hydro ASA (QX)

  By Dominic Chopping 
 

Norwegian aluminum and energy company Norsk Hydro ASA (NHY.OS) is preparing to resume production at its Alunorte alumina refinery in Brazil at half capacity, after reaching a deal with environmental regulators.

The company last week said it had been forced to prepare for a full shutdown of the refinery, which had been running at 50% capacity since March when Brazilian authorities ordered Norsk Hydro to lower water levels at the refinery's bauxite residue deposit amid flooding and possible water contamination.

But after receiving approval to use a new filter to process bauxite residue, Alunorte is now expected to be able to ramp up to 50% production within two weeks, under the supervision of the local environment agency.

"[Norsk] Hydro continues its dialog with all relevant authorities to bring Alunorte back to full production and normalize its operations in Brazil," the company said.

The news that one of the world's biggest refineries of alumina--a critical ingredient for the aluminum industry--will restart some production may help temper the recent rise in aluminum prices. Last week's news that Norsk was preparing to completely shut down Alunorte added to the upward pressure on the metal already stemming from the U.S.'s aluminum import tariffs and sanctions against major producer United Co. Rusal PLC (0486.HK).

Write to Dominic Chopping at dominic.chopping@wsj.com; @domchopping @WSJNordics

(END) Dow Jones Newswires

October 09, 2018 04:50 ET (08:50 GMT)

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