Hydro disagreement with Brazil authorities puts bauxite production at stake [UPDATE]

A conflict between Norwegian aluminium group Norsk Hydro and the Brazilian federal prosecutors’ office, MPF, could put the company’s bauxite production in the Northern state of Pará at risk.

MPF is claiming Mineração Paragominas’ operational license for an ore pipeline and a power transmission line expired in 2014. This would mean the bauxite producer is illegally operating the assets, according to a statement issued on Tuesday March 19. Hydro, on the other hand, has told Fastmarkets that a permit renewal has been filed and the company has been engaged in constant dialogue with the nearby communities and MPF on the matter. Although the license expired in February 2014, Pará’s environmental agency SEMAS has been issuing temporary statements that the permit contiues to be valid to allow Paragominas to keep running. According to a document...


Alice Mason

Renato Rostás

March 22, 2019

14:49 GMT

São Paulo