Compania de Alumina do Para to Begin Construction of $2.2 Billion Alumina Refinery

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Researched by Industrial Info Resources (Sugar Land, Texas)--The construction of a $2.2 billion alumina refinery is to soon begin in the city of Barcarena in Para State, northern Brazil. The project is being developed through Companhia de Alumina do Para S.A. (CAP), a joint venture that is 61% owned by giant mining company Vale S. A. (NYSE:VALE) (Rio de Janeiro, Brazil), 20% by Norsk Hydro ASA (OSE:NHY) (Oslo, Norway) and 19% by Dubai Aluminium Company Limited (Dubai, United Arab Emirates).

The project entails the construction of an alumina refinery with the capacity to produce 1.86 millions tons per year, through two lines of 970,000 tons each. The initial capacity eventually can be expanded to 7.44 millions tons per year.

Earth-moving works already have begun, and the company expects to begin civil works in May 2010. Promon Engenharia S.A. (Rio de Janeiro, Brazil) is working on the detailed engineering study, which is 30% complete. The bidding process for mechanical and electromechanical assembly is expected to be released later this year. According to the company's schedule, the facility will be commissioned in July 2013.

The bauxite that will be used to feed the refinery will be transported through a 224-kilometer slurry pipeline from Vale's mining operations in Paragomina, in Para State. The facility will be 5 kilometers from Alunorte, the world's largest alumina refinery, in which Vale and Norsk Hydro also appear as shareholders.

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