Brazil's Vale to Increase Alumina Production in 2008

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Researched by Industrial Info Resources (Sugar Land, Texas)--In 2007, Companhia Vale do Rio Doce (NYSE: RIO) (Rio de Janeiro, Brazil) (CVRD), the world's largest producer of iron ore and nickel, boosted its yearly expenditure plan to $1.87 billion in order to expand its metals production. The company has announced that it will also increase alumina production in 2008. The metals and mining company foresees producing 5.3 million tons of alumina compared with 4.3 million tons in 2007.

This new production capacity is expected to result from the completion of an expansion project at the alumina refinery Alunorte (Alumina do Norte S.A.), which is located in northern Brazil's Barcarena City in Para State and owned by CVRD and Norsk Hydro. Its capacity is expected to increase by more than 40% in July or August of this year. After hitting 5.3 million tons this year, the capacity is expected to rise to 6.2 million tons in 2009 and then 8.2 million tons in 2012.

Alunorte underwent its first expansion from 2000 to 2003, raising annual production from 1.6 million tons to 2.4 million tons. In 2006, the company invested $310 million in an expansion that boosted capacity to 4.2 million tons. Currently, CVRD and Norsk Hydro are jointly building a 7.4 million-ton refinery that will be located near Alunorte plant. It will receive the necessary bauxite from CVRD's Paragominas mine through a 244-kilometer pipeline, which sends bauxite to the Alunorte alumina refinery. For more details, view related July 26, 2007, article - CVRD and Hydro to Jointly Build a New Alumina Refinery in Brazil.

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