OSLO (Reuters) - Norwegian aluminum producer Norsk Hydro (NHY.OL) is buying for $4.9 billion including debt the aluminum business of Brazilian mining giant Vale’s VALE5.SA, to secure access to bauxite and alumina.
Below are details about the assets Hydro is acquiring:
* Hydro buys a 60 percent stake in Paragominas, one of the largest bauxite mines in the world, situated in the northern state of Para. In 2009, it produced 6.2 million metric tones of bauxite, a raw material for aluminum.
Paragominas has an annual bauxite production capacity of 9.9 million metric tons and eyes an expansion to 15 million metric tons. It employs 825 people.
Hydro has the right to take over the remaining 40 percent stake in Paragominas in two installments, in 2013 and 2015 respectively, for $200 million in cash for each tranche.
* A 91 percent ownership in Alunorte, the world’s largest alumina refinery, also located in Para state. Alunorte processes some of the bauxite extracted at Paragominas.
In 2009, Alunorte produced 6 million tons of alumina, out of a total capacity of 6.3 million metric tons. It employs 1,500 people.
The transaction will make Hydro the world’s No. 5 alumina producer. Hydro has been the world’s ninth biggest alumina maker, producing 2.1 million metric tons in 2009.
* An 81 percent in the CAP alumina refinery project under development. It is to be located 3km away from the Alunorte plant and is to have a total capacity of 7.5 million metric tons.
* A 51 percent in the Albras aluminum smelter, one of the largest ones in the Americas. It can produce up to 460,000 metric tons of per year and in 2009 produced 450,000 tonnes.
Situated in Barcarena, also in Para state, it has a workforce of 1,200.
Reporting by Gwladys Fouche; Editing by Bernard Orr