Hydro hires consultancy to review Brazil refinery

Norway's Norsk Hydro decided to hire local environmental consultancy SGW Services to perform an independent review of the water treatment and effluent management system at its Alunorte alumina refinery in Barcarena in northern Brazil's Pará state.

In a release on Wednesday, Hydro said the review is part of measures announced by the company on February 5 in response to the "challenging situation" at the refinery.

On March 1, Brazil's environmental watchdog Ibama decided to embargo the DRS2 bauxite residue deposit at Alunorte. Ibama also fined the company 20mn reais (US$6.17mn).

The move followed Pará state's decision to order the refinery to cut output by 50% due to the company's failure to comply with a 48-hour deadline to reduce waste basin levels to one meter.

The decisions led the refinery to declare force majeure due to the consequent drop in output and the lack of clarity regarding what measures Hydro would take to return Alunorte to normal operations.

After heavy downpours on February 17, areas around the plant were flooded and communities reported the presence of reddish water and expressed concerns about possible harmful spills, including into the Pará river.

INDEPENDENT REVIEW

According to Hydro, the SGW review will "assess whether Alunorte's water and effluent management system has been operated according to design specifications, applicable permits and legislation, and relevant internal and external requirements."

SGW will report its preliminary conclusions during the first week of April, Hydro said.

Alunorte, the world's largest alumina refinery, exports its production to the Middle East, North America and Europe.