Brazil court revokes Hyrdo’s bid to overturn forced production cut at Alunorte alumina refinery

According to Reuters report, rejection of Norsk Hydro’s appeal to overturn the partial suspension of bauxite refining operations at Alunorte refinery by a court in the Brazilian state of Para emerges as a blow to the world’s largest alumina refinery.

In April, the company had sued state prosecutors in Para in a bid to spur a new study to assess the allegations of prosecutors, after the Lower Court in February and Federal Court in May ordered Hydro to cut production at its Alunorte alumina refinery by 50 per cent. While upholding the lower court’s ruling, Federal Judge Arthur Pinheiro Chaves had said failure to honour the conditions set by the courts would result in a daily fine of 1 million reais ($285,000), according to news published by Reuters. The allegation was the spillage of wastage at one of Alunorte’s bauxite refuse deposits that goes against the environmental protection norms.

The company since then had been admitting that it discharged untreated rain and surface water into a river, which it called unacceptable, but denying many parts of prosecutors’ allegations arguing that there was no evidence for lasting environmental impact.

In an emailed statement on Tuesday, Alunorte said it was evaluating next potential steps in the courts.

Hydro Alunorte, located in the region of Barcarena, is the world's largest alumina refinery with an annual capacity of 6.3 million tonnes. On average, 14 per cent of its production goes to the domestic market and the other 86 per cent is exported.  Hydro holds 92.1 per cent of Alunorte ownership.