Resources company Alumina Limited (ASX: AWC) was amongst the ASX 200’s top performers on Thursday following news from the other side of the world, Norsk Hydro (NHYDY).
Alunorte Closed For Good?
Alumina Limited was among a group of global mining companies that reacted positively to news that the world’s largest alumina refinery, Alunorte, would cease production as it came to loggerheads with Brazilian regulators over an environmental embargo.
The closure saw the price of aluminum rise more than $US10, according to Fairfax reporting.
Norsk Closes Alunorte
The Alunorte refinery in Brazil is owned by Norway’s Norsk Hydro
, which had its share price trimmed by 13% on the news, according to Google Finance.
Due to an environmental dispute, the refinery had been running at half of its capacity.
Brazilian regulators were concerned the plant was allowing potentially harmful water to run into nearby streams during heavy rain.
Norsk Hydro said the plant has gone from a part-time shut down to “100 per cent of its operations”.
“This is a sad day because we have the world’s most advanced technology available to continue safe operations, which we are prevented to use, and this will impact jobs, communities, suppliers and customers,” Norsk’s John Thuestad said in a press release.
“We will continue to work constructively with the authorities to lift the embargo and to resume operations in order to re-establish Alunorte as the world’s leading alumina refinery,” Thuestad added.
Alumina is the key resource to make aluminum, the metal which makes things like fizzy drink cans and car bodies light.
For South32, Rio Tinto Limited (ASX: RIO) and South32 Ltd (ASX: S32) means less supply in the market. Meaning, higher prices for their products.
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