Norwegian aluminium producer Norsk Hydro ASA announced a planned BRL590 million (US$110.7 million) investment in its Miltônia 5 (M5) project at Paragominas bauxite mine in Brazil.
Noting the significant positive contribution the Paragominas bauxite mine has provided the local community, Hydro says the investment will kick off a new mining front at the mine that is expected to go live in 2023. The new mine will use Hydro’s Tailings Dry Backfill as its methodology.
Anderson Martins, Director of Hydro Paragominas, elaborated upon the project in a related press release.
“This new mining front consists of the construction of an access road and infrastructure to support the operations. The work is already underway, with completion scheduled for the first quarter of 2023. Over time, the M5 project will increase its share in Hydro’s production chain, representing the term investments in the assets in Pará. This is an important contribution to the development of Paragominas and the region.”
Hydro estimates that the new bauxite mining front will lead to about 1,000 new jobs, which the firm plans to fill with mostly local workers. Hydro says it will also do as much sourcing from local product and service providers as possible.
“This project includes all the Hydro values,” said Martins. “It was developed during the pandemic and included all areas of the organization, from planning to execution. We will continue to follow the highest standard of quality and safety.”
Norsk Hydro, which was founded in 1905, financed by the Swedish Wallenberg family and French banks, began its life named Norsk hydro-elektrisk Kvælstofaktieselskab (literally, “Norwegian hydro-electric nitrogen limited”) by Sam Eyde. The Norwegian government owns approximately 40% of the company at the present time. Norsk Hydro is one of the largest aluminium companies in the world, with plants in Rjukan, Raufoss, Vennesla, Karmøy, Høyanger, Årdal, Sunndalsøra, and Holmestrand. Norsk also has several plants abroad.
1 BRL = 0.187675 USD