Hydro announced through a press release on 15 December 2016 that the company has completed the acquisition of Vale's remaining shares in Mineração Paragominas S.A. (MPSA). Hydro expects the acquisition will have a positive impact for Bauxite & Alumina segment of about USD 45 million on its result in the fourth quarter of 2016, of which USD 30 million will be excluded from underlying earnings.
The transaction is the second and final step in the arrangements agreed in 20111 regarding the complete takeover of the majority of Vale's aluminium assets in Brazil. The acquisition makes Hydro the 100% stakeholder of MPSA's shares. Originally Hydro owned 67.9% of Mineração Paragominas and Vale owned the remaining 32.1%.
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Hydro's net payment, after making all adjustments resulting from the completion of outstanding contractual arrangements with Vale, was USD 113 million.
Hydro Paragominas in the state of Pará, one of Brazil's northernmost states, started operation in March 2007 and today it mines about 15.2 million metric tons of ore producing about 10 million tons of bauxite annually. The bauxite mined at Paragominas is transported to its Alunorte refinery and shipped to aluminium producers in Brazil and other parts of the world.
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