Norsk Hydro ASA's Alunorte alumina refinery in Brazil's Para state declared force majeure after the federal and state governments ordered it to cut output by 50%.
Authorities ordered the company to suspend operations at the DRS2 bauxite residue disposal within the refinery, and slapped it with a 20-million-reais fine, after the Brazilian environmental agency Ibama claimed that Alunorte was operating without environmental licenses.
DRS2 will be suspended until authorities verify that an operational license for it has been issued.
The refinery's operating unit, Alumina do Norte do Brasil SA, said there was a lack of clarity into what measures it would take to return Alunorte to normal operations, according to the March 2 release.
The company noted that Alunorte is implementing contingency plans to reduce the potential negative effect on customers and suppliers.
As of March 2, US$1 was equivalent to 3.26 Brazilian reais.
