Vale Builds Alumina Project

Brazil’s Vale says it plans to invest $2.2bn to kick-start a new alumina refinery in Brazil called Companhia de Alumina do Para (CAP). And it plans to expand a bauxite mine called Paragominas, also located in the state of Para, using capex of $487m. CAP will be 80% owned by Vale and 20% owned by Hydro Aluminium, the Norway-based major aluminum producer. “These projects are consistent with our strategy for the aluminum business,” says Vale, noting it will focus on growing its upstream production by developing bauxite. Vale has a large cash position and has recently funded similar projects with resources on hand.