Glencore has announced that it has reached a US$775 million binding agreement with Norsk Hydro ASA (Hydro) to acquire a 30% equity stake in Alunorte S.A. (Alunorte) and a 45% equity stake in Mineracão Rio do Norte S.A. (MRN).

The completion of the transaction is subject to various conditions, including regulatory approvals that are typically required, and the two deals with Hydro are interdependent. On completion of the Transaction Glencore will:

• become party to the Alunorte joint venture with Hydro and the other minority shareholders;
• become party to the MRN joint venture with the other existing shareholders, South32, Rio Tinto and Companhia Brasileira de Aluminio;
• not be the operator of either asset; and
• have offtake rights for the life of mine in respect of its pro rata share of the production from both Alunorte and MRN.