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LONDON (E24): The Hydro boss said the company was working "day and night" to find a solution to the problems faced in Brazil.
In Brazil, Alunorte still uses half a machine, which greatly contributes to Hydro's inability to achieve its goal of improvement.
Problems started in February with heavy rainfall and rainwater discharges from the plant area, after which the environmental protection authorities and a regional court accused the largest refinery of alumina in the world to reduce its production.
Even Hydro has returned emissions charges harmful to the environment, and the company has borrowed internal and external reviews that publish Hydro.
Bill billion
The problems had consequences for Hydro, which could not reach its goal of improvement of NOK 3 billion. Here, all the improvements are erased by the Alunorte bill.
Hydro does not reach its 3 billion improvement goals because of Brazil's problems
Albras' aluminum and bauxite mines, Paragominas, have also been forced to reduce their production due to the loss of alumina from Alunorte.
In Brandtzæg's presentation of Achieving Hydro's objectives, it is now flashing more in red than in green, largely because of the problems faced by Brazil.
Even Hydro estimated that the bill in October had reached 2.3 billion.
"It is clear that Brazil has a lot of time and effort, but we must not forget that Hydro has a long-term value chain, and we want to take care of the whole of society," he says. Brandtzæg at E24.
– Step by step
"We are now in agreement with the authorities and are working constructively with those for which Hydro has acted appropriately." We avoided landfill disposal, but we had water Rainfall when we escaped into the Pará River and, as agreed, a violation of our license, "said John Thuestad, Executive Vice President and Head of the Bauksitt & Alumina Business Area of Hydro.
He says Hydro has taken the consequences by building a large water collection system and improving the water purification system.
Thuestad also mentions the agreements reached by Hydro with the state governments of Pará and the Ministry of Law on a number of local measures, including social measures and technical improvements.
The agreement has now been validated in the federal justice system, according to Hydro.
"Validation is important because it validates the agreement, so we now have a formal agreement between the authorities and ourselves for whom we are working.
"We are moving step by step in a direction where we think we are ready for start-up when we receive feedback that everything is fine," Thuestad said.
Still on the world market, the loss of alumina, the raw material extracted from bauxite, forms the basis of aluminum production.
These obstacles must be passed
The status at Alunorte is now that the federal law and the environmental agency of the state Semas have reduced production orders.
This is one of two hurdles to overcome so that production can actually start, according to Brandtzæg.
"This is an important judgment decision, and the judgment will take time.
"We have now handed over an alleged petition to Brazil in order to first get the DSR2 embargo," he said.
The CEO is addressing the new Hydro Waste Depot for disposal of bauxite residues, ie raw materials from which alumina is recovered.
In October, the Brazilian federal environment authorities (Ibama) abolished the use of the landfill, but the jurisdiction of the federal judicial system states that the landfill can not be used.
Hydro has filed a legal request to lift the ban.
"The next step is to lift the embargo on the production of 50%, it is in progress," said the boss of Hydro.
Hydro gets closer to full commissioning in Brazil: environmental authorities give Alunorte the green light
However, when that can happen is still uncertain. Analysts have previously estimated that the operation would have ended in 2019.
Plan of investment
Hydro has also committed to a number of investments, including technical improvements at Alunorte, social investments and the construction of water treatment facilities.
The investments will amount to 1.1 billion Brazilian real, or about 2.5 billion euros.
One of the most important projects is also to increase the capacity of a water reservoir by 350%, which should be done by the end of the year.
"Now, the rainy season begins in December, which means we are ready when the peak rainy season begins next year," said the Hydro boss.
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