OSLO, Norway, June 13, 2003 (PRIMEZONE) -- Norsk Hydro (NYSE:NHY): Comalco and Hydro Aluminium today signed one of the largest alumina supply contracts in the history of the aluminium industry.
Under the agreement, starting with a volume of 300,000 tonnes in 2005, Comalco will supply Hydro Aluminium with 500,000 tonnes of alumina annually from 2006 through to 2030. The agreement allows for volume increases at different stages during the duration of the contract.
Hydro Aluminium plans to use the alumina to secure future supply to its Australian operations which include the wholly owned Kurri Kurri aluminium smelter and the Tomago aluminium smelter (12.4 per cent share), both in New South Wales, Australia.
Comalco will supply alumina for this contract through its 39 per cent share in Queensland Alumina Limited's refinery and its new wholly owned Comalco Alumina Refinery, due to make its first shipments in 2005, both based in Gladstone, Australia.
The contract was signed in Oslo today by Comalco Chief Executive, Mr. Sam Walsh and Hydro Aluminium's Chief Executive, Mr. Jon-Harald Nilsen.
Mr. Jon-Harald Nilsen said, "This long term contract, with a strong partner and the security of two world class refineries, means this is a good alignment -- matching our future alumina needs with Comalco's ability to supply."
"The agreement fits well with Hydro Aluminium's strategy to improve its primary aluminium cost position and to strengthen its leading positions mid and down stream, while securing an alumina supply portfolio with limited investment," he said.
Mr. Sam Walsh said, "Comalco's agreement with Hydro Aluminium helps to achieve our aim of maximising the value of the Weipa bauxite resource in north Queensland, Australia. This landmark agreement is in line with our strategy to grow our alumina business and underpins our commitment to the new Comalco Alumina Refinery in Gladstone, Australia." Both parties are satisfied that the terms agreed are in line with industrial long-term prices.
Hydro Aluminium is one of the top three integrated, global aluminium companies, and the leading aluminium company in Europe. Hydro Aluminium is part of Norsk Hydro, a leading Norway-based industrial group with core businesses areas being Hydro Oil & Energy, Hydro Agri and Hydro Aluminium.
Comalco, a wholly owned subsidiary of Rio Tinto, is a major Australian-based supplier of bauxite, alumina and primary aluminium to world markets. It operates or has interests in bauxite mines in Australia and Guinea, alumina refineries in Australia and Sardinia, Italy, and aluminium smelters in Australia and New Zealand. Further information, please see www.hydro.com and www.comalco.com.au ***** Certain statements in this press release are or may constitute "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not in the nature of historical facts may be deemed to be forward-looking statements and may contain identifying words such as "believes", "anticipates", "plans", "expects" and similar expressions. These forward looking statements are based on Hydro's current expectations, assumptions, estimates and projections about the company and the industries in which it engages in business. All forward-looking statements involve risks and uncertainties. For a detailed description of factors that could cause Hydro's actual results to differ materially from those expressed in or implied by such statements, please refer to its annual report on Form 20-F for the year-ended December 31, 2002 and subsequent filings on Form 6-K with the U.S. Securities and Exchange Commission. With respect to each non-GAAP financial measure Hydro uses in connection with its financial reporting and other public communications, Hydro provides a presentation of what Hydro believes to be the most directly comparable GAAP financial measure and a reconciliation between the non-GAAP and GAAP measures. This information can be found in Hydro's earnings press releases, quarterly reports and other written communications, all of which have been posted to Hydro's website (www.hydro.com).
Contact Thomas Knutzen Tor Steinum
Telephone +47 22539115 (+47) 22 53 27 31
Cellular +47 90612359 (+47) 95 08 39 33
E-mail Thomas.Knutzen@hydro.com Tor.Steinum@hydro.com
Hydro Aluminium,Norway
Phone: (+47) 22 53 81 00
Fax: (+47) 22 53 79 30
www.hydro.com