Hydro expands the scope of the ongoing independent review of Alunorte by Brazilian environmental consultancy SGW Services to include all interfaces with areas adjacent to the refinery operation. Hydro's Internal Audit will conduct a full review of all licenses, complementing SGW's review of Alunorte's permits and relevant legislation.
The decision to expand the scope of SGW's mandate and to launch an internal audit follows an infraction notice from Pará State Environment and Sustainability Secretary - SEMAS on 15 March.
The notice relates to an unlicensed connection between the Alunorte refinery and a licensed drainage canal from the adjacent Albras aluminium plant, leading to discharge of untreated rainwater from the roof of the coal storage shed at Alunorte into the Pará River through this internal canal. Subsequently, Hydro discovered an additional inflow of water to the canal from the former hydrate storage area.
"We have discharged untreated rain and surface water into the Pará River. This is completely unacceptable and in breach with what Hydro stands for. On behalf of the company, I personally apologize to the communities, authorities and the society. This underlines the importance of the thorough review of Alunorte, including interfaces with adjacent operations to verify compliance with licenses. We need the full picture so we can put in place necessary actions," says Hydro President and CEO Svein Richard Brandtzæg.
According to the license, all rain and surface water from Alunorte refinery area should have been led to the water treatment system. Tests by SEMAS showed that water instead flowed into the canal stemming from Albras. These discharges are independent of the extreme rainfall experienced in February.
Following an internal review, there is also indication that surface water from the former hydrate storage area could have been led into the Albras canal.
The inlet from the coal storage shed has now been sealed. Hydro is working on finding the best solution to close the inlet from the former hydrate area.
As earlier communicated, the findings of the internal review and first phase of the external review will be presented on April 9, together with further necessary measures.
Hydro is South America's biggest aluminium company after acquiring Brazilian mining company Vale's aluminium assets in the state of Pará in 2011. Alunorte is the world's largest alumina refinery, employs around 2,000 people and has a nameplate capacity of an annual 6.3 million tonnes. Hydro owns 92.1 percent of Alunorte.
Investor contacts
Stian Hasle
+47 97736022
Stian.Hasle@hydro.com
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Even.Simonsen@hydro.com
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Halvor Molland
+47 92979797
Halvor.Molland@hydro.com
Cautionary note
Certain statements included in this announcement contain forward-looking information, including, without limitation, information relating to (a) forecasts, projections and estimates, (b) statements of Hydro management concerning plans, objectives and strategies, such as planned expansions, investments, divestments, curtailments or other projects, (c) targeted production volumes and costs, capacities or rates, start-up costs, cost reductions and profit objectives, (d) various expectations about future developments in Hydro's markets, particularly prices, supply and demand and competition, (e) results of operations, (f) margins, (g) growth rates, (h) risk management, and (i) qualified statements such as "expected", "scheduled", "targeted", "planned", "proposed", "intended" or similar.
Although we believe that the expectations reflected in such forward-looking statements are reasonable, these forward-looking statements are based on a number of assumptions and forecasts that, by their nature, involve risk and uncertainty. Various factors could cause our actual results to differ materially from those projected in a forward-looking statement or affect the extent to which a particular projection is realized. Factors that could cause these differences include, but are not limited to: our continued ability to reposition and restructure our upstream and downstream businesses; changes in availability and cost of energy and raw materials; global supply and demand for aluminium and aluminium products; world economic growth, including rates of inflation and industrial production; changes in the relative value of currencies and the value of commodity contracts; trends in Hydro's key markets and competition; and legislative, regulatory and political factors.
No assurance can be given that such expectations will prove to have been correct. Hydro disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.