Power Outage Leads To Production Stoppage At Paragominas, Reduction At Alunorte

Power Outage Leads To Production Stoppage At Paragominas, Reduction At Alunorte

Norwegian aluminium giant Norsk Hydro ASA announced on Thursday a power outage in Brazil affecting the firm’s bauxite mine and alumina refinery in the state of Pará.

According to Hydro’s press release, a transmission tower toppled on Wednesday, cutting power to Mineração Paragominas S.A. Though no injuries were reported, the mishap has temporarily halted production at the mine. As a result, the pipeline between Paragominas and Alumina do Norte do Brasil S.A. (Alunorte alumina refinery) is no longer being filled by the mine, but Hydro said the bauxite in the line at the time of the power outage has been cleared via back-up power sources.

While power is down to the mine, Hydro will reduce production at the Alunorte refinery to between 50 percent and 70 percent of capacity in order to extend the bauxite inventory’s lifetime.

Hydro assured investors that it is taking all appropriate measures to bring the mine back online as quickly as possible. However, the firm says it may take up to ten days to restore power to the mine. Hydro assured customers that they would see no impact from the stoppage, and indicated that the financial impact to the company would be “limited.”

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, including in Germany and Brazil.