Wrap Text
Glencore purchases equity stakes in Mineracão Rio do Norte S.A. and Alunorte S.A. from Norsk Hydro ASA
GLENCORE PLC
(Incorporated in Jersey under the Companies (Jersey) Law 1991)
(Registration number 107710)
JSE Share Code: GLN
LSE Share Code: GLEN
ISIN: JE00B4T3BW64
LEI: 2138002658CPO9NBH955
Baar, Switzerland
28 April 2023
Glencore announces the purchase of equity stakes in
Mineracão Rio do Norte S.A. and Alunorte S.A. from
Norsk Hydro ASA
Glencore is pleased to announce that it has reached a binding agreement with Norsk
Hydro ASA (“Hydro”), one of the world’s leading low-carbon aluminium companies, to
acquire a 30% equity stake in Alunorte S.A. (“Alunorte”) and a 45% equity stake in
Mineracão Rio do Norte S.A. (“MRN”) (the “Transaction”).
Glencore is acquiring these non-controlling stakes for a combined equity value of ~USD
775 million, basis an agreed proportionate look through Enterprise Value and a net debt
of USD 335 million in the business as at 31 March 2023. The transaction has an effective
date of 30 June 2023 and includes certain post-closing adjustments, based on the
performance of Alunorte over a 21-month period from 30 June 2023. Total payment on
completion, including earn-in and other adjustments, is currently expected to be ~USD
700 million. Completion is expected to occur in H2 2023.
Completion of the Transaction is conditional on, without limitation, customary regulatory
approvals and the two transactions with Hydro are inter-conditional.
On completion of the Transaction:
• Glencore will become party to the Alunorte joint venture with Hydro and other
minority shareholders
• Glencore will become party to the MRN joint venture with the other existing
shareholders, being South32, Rio Tinto and Companhia Brasileira de Aluminio
• Glencore will not be the operator of either asset
• Glencore will have offtake rights for life of mine in respect of its pro rata share of
the production from both Alunorte and MRN. Most of the bauxite purchased by
Glencore from MRN will be supplied to Alunorte. In addition to the supply of MRN
bauxite by Glencore, Alunorte currently purchases approximately 70% of its
bauxite requirements from Paragominas, a bauxite mine wholly owned by Hydro
Robin Scheiner, Head of Alumina and Aluminium, Glencore, commented:
“The growing decarbonisation trend is driving demand not only for the mass production
of batteries that require the raw materials which Glencore produces, but also for primary
aluminium as a strong, lightweight manufacturing metal.
“The purchase of the equity stakes in Alunorte and MRN provide Glencore with exposure
to lower-quartile carbon alumina and bauxite, enhancing our capability to supply such
critical material for the ongoing energy transition to our customers. Both Alunorte and
MRN produce high quality products, which should support particularly our marketing
activities across the Atlantic basin.
“We look forward to working with our joint venture partners to further strengthen
Alunorte’s position as a producer of low-carbon alumina.”
Further information on Alunorte and MRN:
Alunorte:
• Alunorte is the world’s largest alumina refinery outside China, located in the city
of Bacarena, state of Para in Brazil.
• It began operations in 1995 and has ~2,200 permanent employees.
• It has a nameplate capacity and currently operating at ~6.3m MT/year, and is
looking to expand in the future.
• It is ASI certified and the only refinery in the world to have obtained the
ISO55001/2014 asset management certification, in addition to other ISO and SA
certifications.
• As well as being amongst the lowest cost refineries in the world, Alunorte is 1st
quartile with respect to carbon emissions with a clear plan to be 1st decile by 2025,
driven by a change in fuel consumption and the roll-out of electrical boilers.
MRN:
• MRN is an open cast, high quality, low-cost bauxite mine located in Trombetas,
Brazil.
• Alunorte is one of the biggest consumers of MRN bauxite.
• MRN has annual production capacity of ~12.5 million metric tons of bauxite and
nearly 1,300 permanent employees.
• It is a leader in Brazil in sustainable mining and one of the largest socio-economic
contributors in the region.
• It began extracting bauxite in 1979.
• It has an independent management team which reports into its shareholders.
Page 3
For further information please contact:
Investors
Martin Fewings t: +41 41 709 28 80 m: +41 79 737 56 42 martin.fewings@glencore.com
Media
Charles Watenphul t: +41 41 709 24 62 m: +41 79 904 33 20 charles.watenphul@glencore.com
www.glencore.com
Notes for Editors
Glencore is one of the world’s largest global diversified natural resource companies and a major producer and
marketer of more than 60 commodities that advance everyday life. Through a network of assets, customers
and suppliers that spans the globe, we produce, process, recycle, source, market and distribute the
commodities that support decarbonisation while meeting the energy needs of today.
With around 140,000 employees and contractors and a strong footprint in over 35 countries in both
established and emerging regions for natural resources, our marketing and industrial activities are supported
by a global network of more than 40 offices.
Glencore's customers are industrial consumers, such as those in the automotive, steel, power generation,
battery manufacturing and oil sectors. We also provide financing, logistics and other services to producers
and consumers of commodities.
Glencore is proud to be a member of the Voluntary Principles on Security and Human Rights and the
International Council on Mining and Metals. We are an active participant in the Extractive Industries
Transparency Initiative.
We recognise our responsibility to contribute to the global effort to achieve the goals of the Paris Agreement
by decarbonising our own operational footprint. We believe that we should take a holistic approach and have
considered our commitment through the lens of our global industrial emissions. Against a 2019 baseline, we
are committed to reducing our Scope 1, 2 and 3 industrial emissions by 15% by the end of 2026, 50% by the
end of 2035 and we have an ambition to achieve net zero industrial emissions by the end of 2050. For more
detail see our 2022 Climate Report on the publication page of our website at glencore.com/publications.
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Disclaimer
The companies in which Glencore plc directly and indirectly has an interest are separate and distinct legal entities. In this
document, “Glencore”, “Glencore group” and “Group” are used for convenience only where references are made to Glencore
plc and its subsidiaries in general. These collective expressions are used for ease of reference only and do not imply any
other relationship between the companies. Likewise, the words “we”, “us” and “our” are also used to refer collectively to
members of the Group or to those who work for them. These expressions are also used where no useful purpose is served
by identifying the particular company or companies.
Sponsor
Absa Corporate and Investment Bank, a division of Absa Bank Limited
Date: 28-04-2023 07:40:00
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