The main reasons for the postponement of the CAP project are the uncertainty related to short- and medium-term aluminium supply/demand balance and the development in the world economy.

The new alumina refinery, supplying raw material for aluminium production was scheduled to start production in 2015 based on bauxite supply from an expansion of Hydro’s mining operations in Paragominas, Brazil.

Companhia de Alumina do Para is owned by Hydro (81 percent) and Dubal (19 percent).

“The decision to postpone the CAP project does not reflect any changes in our-long term faith in the market for alumina and aluminium or the CAP project. Economic developments in a number of countries, not least in Europe, have led to lower production volumes than expected at our customers,” says Executive Vice President Johnny Undeli, head of Hydro’s bauxite and alumina operations.