ESG

"This is completely unacceptable"

Norwegian aluminium company Norsk Hydro (OS:NHY) has apologised after discovering more untreated water has flowed from its majority-owned Alunorte refinery in Brazil into the Pará river.

Staff reporter
Hydro CEO Svein Richard Brandtzæg at Alunorte earlier this month

Hydro CEO Svein Richard Brandtzæg at Alunorte earlier this month

It has also expanded the scope of an independent review, due to report in early April, and launched an internal audit after receiving an infraction notice from SEMAS, the Pará State Environment and Sustainability Secretary, relating to an unlicensed drainage connection.

The company said today that untreated rainwater from the roof of a coal storage shed had entered the Pará river via an unlicensed connection to a drainage canal - and it had found there had been an additional inflow of water to the canal from the former hydrate storage area.

"We have discharged untreated rain and surface water into the Pará River," Hydro president and CEO Svein Richard Brandtzæg said.

"This is completely unacceptable and in breach with what Hydro stands for. On behalf of the company, I personally apologise to the communities, authorities and the society."

The company said all water should have been led to the water treatment system rather than flowing into the canal and the discharges were independent of February's extreme rainfall.

Alunorte was ordered to halve production by Brazil authorities in February after concerns were raised over leakage from the operation following heavy rainfall in the Pará state.

Hydro has said there was no proof of leakage from its bauxite residue deposits but on Friday said it would invest K500 million (US$65 million) increasing Alunorte's water treatment system capacity by 50%.

Its preliminary investigations last week found problems, including cracks in a pipeline and that caustic soda had mixed with rainwater and flowed into the canal after a power failure at the plant.

On Friday it said its 600 Alunorte employees would be on "collective vacation" - in alternating groups for 10-day periods - from March 31 to preserve jobs now its refinery was operating at 50%.

It has also put its 400 employees at its Paragominas bauxite mine on collective vacation starting April 2.

Hydro shares, which were trading above K57.6 in mid-February, were down 0.82% to 48.52 on Friday, representing a 22.18% drop year-to-date.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.

editions

Mining Journal Intelligence Global Leadership Report 2023: Social licence

Gain insights into social licence trends and best practices from interviews with 20+ top mining company executives and an industrywide survey.