TIDMNHY 
 
 
   Hydro has signed a Letter of Intent (LoI) with Brazilian mining company 
Vale for the possible acquisition of Vale's 40 % interest in Brazilian 
bauxite producer Mineração Rio do Norte (MRN), which would 
strengthen Hydro's global position as a long player in bauxite and 
alumina. 
 
   An eventual agreement will depend on the parties agreeing terms for 
Hydro to acquire Vale's 40% interest in MRN, completion of Hydro's  due 
diligence process, approval by the parties' Board of Directors and by 
the relevant competition authorities. The parties will also seek support 
from the other MRN shareholders to the transaction and will proceed in 
accordance with the terms of the shareholders' agreement. MRN's current 
shareholders are Vale (40%), Alcoa (18.2%), South 32 (14.8%), Rio Tinto 
(12%),CBA (10%) and Hydro (5%). 
 
   MRN is situated in the westernmost part of the state of Para, home to 
Hydro's other Brazilian operations, and is Brazil's, and one of the 
world's largest producers of bauxite. In operation since 1979, MRN 
currently employs around 1,400 employees and a significant number of 
contractors. 
 
   MRN is a well-operated mining operation with a competitive cost position 
due to its high-quality bauxite, attractive strip ratio and 
economy-of-scale benefits through its 18-million-tonnes-per-year 
production. In addition to mining licenses covering a total 143,000 
hectares, operations include mine infrastructure and equipment, the 
Porto Trombetas township, railway, stockyard, beneficiation plant, 
tailings disposal system, driers, port and power generation facilities. 
 
   Hydro acquired Vales' other Brazilian aluminium assets in 2011, 
including the 57% interest in the Alunorte alumina refinery, the 
Paragominas bauxite mine, a 51% interest in the Albras smelter, and 
their 61 percent interest in the CAP alumina refinery project, all 
located in the state of Para.  The 2011 agreement also included 
commercial agreements for Vale's bauxite offtake in MRN 
 
   Investor contact 
 
   Contact Pål Kildemo 
 
   Cellular +47 97096711 
 
   E-mail Pal.Kildemo@hydro.com 
 
   Press contact 
 
   Contact Halvor Molland 
 
   Cellular +47 92979797 
 
   E-mail Halvor.Molland@hydro.com 
 
   Certain statements included within this announcement contain 
forward-looking information, including, without limitation, those 
relating to (a) forecasts, projections and estimates, (b) statements of 
management's plans, objectives and strategies for Hydro, such as planned 
expansions, investments or other projects, (c) targeted production 
volumes and costs, capacities or rates, start up costs, cost reductions 
and profit objectives, (d) various expectations about future 
developments in Hydro's markets, particularly prices, supply and demand 
and competition, (e) results of operations, (f) margins, (g) growth 
rates, (h) risk management, as well as (i) statements preceded by 
"expected", "scheduled", "targeted", "planned", "proposed", "intended" 
or similar statements. 
 
   Although we believe that the expectations reflected in such 
forward-looking statements are reasonable, these forward-looking 
statements are based on a number of assumptions and forecasts that, by 
their nature, involve risk and uncertainty. Various factors could cause 
our actual results to differ materially from those projected in a 
forward-looking statement or affect the extent to which a particular 
projection is realized. Factors that could cause these differences 
include, but are not limited to: our continued ability to reposition and 
restructure our upstream and downstream aluminium business; changes in 
availability and cost of energy and raw materials; global supply and 
demand for aluminium and aluminium products; world economic growth, 
including rates of inflation and industrial production; changes in the 
relative value of currencies and the value of commodity contracts; 
trends in Hydro's key markets and competition; and legislative, 
regulatory and political factors. 
 
   No assurance can be given that such expectations will prove to have been 
correct. Hydro disclaims any obligation to update or revise any forward 
looking statements, whether as a result of new information, future 
events or otherwise. 
 
   This information is subject of the disclosure requirements pursuant to 
section 5-12 of the Norwegian Securities Trading Act. 
 
   This announcement is distributed by NASDAQ OMX Corporate Solutions on 
behalf of NASDAQ OMX Corporate Solutions clients. 
 
   The issuer of this announcement warrants that they are solely 
responsible for the content, accuracy and originality of the information 
contained therein. 
 
   Source: Norsk Hydro via Globenewswire 
 
   HUG#1957748 
 
 
  http://www.hydro.com/en/?WT.mc_id=Pressrelease 
 

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(END) Dow Jones Newswires

October 09, 2015 01:16 ET (05:16 GMT)