Companhia Vale do Rio Doce (Vale) announces that it has entered into a share purchase agreement with Dubai Aluminium Company Limited (DUBAL), which operates one of the largest single site aluminum smelters in the world and the industrial flagship of Dubai, to become a partner in its subsidiary Companhia de Alumina do Pará (CAP). The transaction is subject to the fulfillment of certain conditions.
As a consequence, Vale will hold 61% of the total capital of CAP, Hydro Aluminium (Hydro) - one of the largest global producers of aluminum and aluminum products - 20%, and DUBAL 19%.
CAP will be responsible for the implementation and operation of an alumina refinery, located in Barcarena, 5 km away from the alumina refinery of our subsidiary Alunorte. The initial production capacity of this refinery will be 1.86 million metric tons per year of alumina, through two lines, each one of 930,000 tons per year. The start-up of the first phase is expected for the end of 2012, according to market conditions.