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Norsk Hydro: Hydro enters LoI with Vale to raise MRN ownership to 45%

Hydro has signed a Letter of Intent (LoI) with Brazilian mining company Vale
for the possible acquisition of Vale's 40 % interest in Brazilian bauxite
producer Mineração Rio do Norte (MRN), which would strengthen Hydro's global
position as a long player in bauxite and alumina.

An eventual agreement will depend on the parties agreeing terms for Hydro to
acquire Vale's 40% interest in MRN, completion of Hydro's due diligence
process, approval by the parties' Board of Directors and by the relevant
competition authorities. The parties will also seek support from the other
MRN shareholders to the transaction and will proceed in accordance with the
terms of the shareholders' agreement. MRN's current shareholders are Vale
(40%), Alcoa (18.2%), South 32 (14.8%), Rio Tinto (12%),CBA (10%) and Hydro

MRN is situated in the westernmost part of the state of Para, home to Hydro's
other Brazilian operations, and is Brazil's, and one of the world's largest
producers of bauxite. In operation since 1979, MRN currently employs around
1,400 employees and a significant number of contractors.

MRN is a well-operated mining operation with a competitive cost position due
to its high-quality bauxite, attractive strip ratio and economy-of-scale
benefits through its 18-million-tonnes-per-year production. In addition to
mining licenses covering a total 143,000 hectares, operations include mine
infrastructure and equipment, the Porto Trombetas township, railway,
stockyard, beneficiation plant, tailings disposal system, driers, port and
power generation facilities.

Hydro acquired Vales' other Brazilian aluminium assets in 2011, including the
57% interest in the Alunorte alumina refinery, the Paragominas bauxite mine,
a 51% interest in the Albras smelter, and their 61 percent interest in the
CAP alumina refinery project, all located in the state of Para. The 2011
agreement also included commercial agreements for Vale's bauxite offtake in

Investor contact
Contact Pål Kildemo
Cellular +47 97096711

Press contact
Contact Halvor Molland
Cellular +47 92979797

Certain statements included within this announcement contain forward-looking
information, including, without limitation, those relating to (a) forecasts,
projections and estimates, (b) statements of management's plans, objectives
and strategies for Hydro, such as planned expansions, investments or other
projects, (c) targeted production volumes and costs, capacities or rates,
start up costs, cost reductions and profit objectives, (d) various
expectations about future developments in Hydro's markets, particularly
prices, supply and demand and competition, (e) results of operations, (f)
margins, (g) growth rates, (h) risk management, as well as (i) statements
preceded by "expected", "scheduled", "targeted", "planned", "proposed",
"intended" or similar statements.

Although we believe that the expectations reflected in such forward-looking
statements are reasonable, these forward-looking statements are based on a
number of assumptions and forecasts that, by their nature, involve risk and
uncertainty. Various factors could cause our actual results to differ
materially from those projected in a forward-looking statement or affect the
extent to which a particular projection is realized. Factors that could cause
these differences include, but are not limited to: our continued ability to
reposition and restructure our upstream and downstream aluminium business;
changes in availability and cost of energy and raw materials; global supply
and demand for aluminium and aluminium products; world economic growth,
including rates of inflation and industrial production; changes in the
relative value of currencies and the value of commodity contracts; trends in
Hydro's key markets and competition; and legislative, regulatory and
political factors.

No assurance can be given that such expectations will prove to have been
correct. Hydro disclaims any obligation to update or revise any forward
looking statements, whether as a result of new information, future events or

This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.


This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Norsk Hydro via Globenewswire


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