Hydro foresees 2008 capex of US$2bn - Brazil

Norway's Hydro plans capital expenditure of 11bn-12bn kroner (up to US$2.08bn) in 2008, including Brazil, Hydro president and CEO Eivind Reiten said in a webcast on Thursday. Capex is expected to total some 6.5bn kroner this year. In Brazil, Hydro has a 34% stake in the Alunorte alumina refinery in Pará state, while Rio de Janeiro-based CVRD (NYSE: RIO) has a 57% share in the plant. "We're into the third and final expansion step at the refinery, and that is well in line with plans and will be completed next year," Reiten said. According to earlier reports, Alunorte will have a capacity of 6.3Mt/y by 2008. CVRD and the European company signed a deal earlier this year to develop a new 7.4Mt/y alumina refinery, also in Pará, which involves four 1.85Mt/y stages of development. "This will be the largest alumina refinery in the world," according to Reiten. "This [project] is a really strategic and important step to support the growth going forward." Rio de Janeiro-based CVRD, the world's largest iron ore producer, also churns out kaolin, copper, coal, and cobalt, among others.