Hydro Completed Multi-Million Dollar Agreement with Glencore

SEATTLE (Scrap Monster): Hydro announced finalization of a significant transaction with Glencore. The USD 1.11 billion worth deal covers sale of 30% indirectly held interests in the Alunorte alumina refinery and Hydro’s 5% holding in the bauxite producer Mineracao Rio do Norte (MRN), along with 40% stake held by Vale in MRN.

Hydro and Glencore aim to continue efforts to curb carbon emissions from Alunorte by way of implementation of a fuel switch project that replaces fuel oil with LNG and electrification of boilers. The development will position Alunorte as a leading supplier of low-carbon alumina. Moreover, the partners committed to deliver significant improvements to nearby communities.

The transaction will not result in any remeasurement or recognized gain. Alunorte will be consolidated in Hydro’s financial accounts. Further to the deal, Hydro will be the largest shareholder of Alunorte, with 62% ownership. Glencore will own 30% share. The remaining 8% share will be collectively held by four minority shareholders.

Hilde Merete Aasheim, President and CEO, Hydro noted that the company is looking forward to work with Glencore to further develop Alunorte in order to significantly bring down its carbon footprint.

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