LONDON, UK: Glencore Plc has announced the acquisition of equity stakes in Mineracão Rio do Norte S.A. and Alunorte S.A. from Norsk Hydro ASA, a leading low-carbon aluminium company.

The agreement involves a 30% equity stake in Alunorte and a 45% equity stake in Mineracão Rio do Norte. The transaction is valued at approximately USD 775 million, based on an agreed proportionate look-through enterprise value, and the net debt of USD 335 million in the business as of 31 March 2023.

Alunorte is the world’s largest alumina refinery outside China, located in the city of Bacarena, state of Para in Brazil.

Mineracão Rio do Norte is an open cast, high quality, low-cost bauxite mine located in Trombetas, Brazil.

The deal is set to be completed in H2 2023, subject to customary regulatory approvals and inter-conditional transactions with Hydro.

Upon completion, Glencore will become a party to the joint ventures with Hydro and other existing shareholders, but will not be the operator of either asset.

Glencore will also have offtake rights for the life of the mine in relation to its pro rata share of the production from both Alunorte and MRN.

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 acquisition 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.”

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.

Glencore plc

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