Hydro Annual Report 2011b

Total payments (taxes, fees, etc.) to host governments 1)
In 2011, we entered into dialog with certain suppliers and customers
about alleged breaches of Hydro policies.
In addition to Hydro’s 5 percent ownership stake in MRN in
Brazil, we have a long-term offtake agreement to vale’s share of
MRN’s production. This makes MRN a large supplier of
bauxite to Hydro. See pages 54, 65 and 66 for more information
about MRN.
voluntary commitments
Our most important voluntary commitments are our support of
the principles in the Universal Declaration of Human Rights
and the UN Global Compact. We also support the OECD’s
Guidelines for Multinational Enterprises, Transparency International’s
Business Principles for Countering Bribery, the World
Economic forum’s Partnering Against Corruption Initiative,
and the Extractive Industries Transparency Initiative (EITI). We
voluntarily report payments to host governments related to
exploration and extraction activities for bauxite, as well as operations
for the production of aluminium oxide, based on EITI’s
principles. In addition, we cooperate with organizations including
Transparent Agent and Contracting Entities, Transparency
International and Amnesty International. In 2011, we became a
member of the International Council on Mining and Metals
(ICMM). Through this membership we are committed to following
ICMM’s 10 Principles.
According to our internal directives, Hydro is not permitted to
make financial contributions to political parties.
Community impact
Ensuring responsible conduct in relation to society at large is
an important element throughout the life phase of our activities.
The construction of new plants, acquisitions and divestments
as well as closing down capacity, are particularly
vulnerable in this respect. Our long experience in responsible
restructuring has been severely tested in recent years.
On february 28, 2011, we took over the majority of vale’s aluminium
business in Brazil. We have become the majority owner
of one of the largest bauxite mines in the world, the largest
vIABIlItY perForMAnCe
Community impact
NOK million 2011 2010 2009 2008 2007
Australia - - (0.7) 0.4 6
Brazil 48 98 160 139 89
1) Total payments to host governments in connection with the exploration and production of bauxite and alumina. Payments include benefit streams, profit tax,
royalty, license fees, rental fees, entry fees, etc. The reporting is based on the principles in Extractive Industries Transparency Initiative (EITI). In 2012, Hydro
divested its ownership share in Alpart, Jamaica.
59
alumina refinery in the world and have substantial expansion
opportunities in this critical part of the value chain. It also gave
us 3,850 new colleagues in Brazil – or about 6,500 including
apprentices and employees on long-term contracts. Germany
and Brazil are now the countries where we have the most employees,
followed by Norway. The transaction has also given us substantial
presence in a geographical area with exposed societies and
vulnerable ecosystems. We are working on the integration of the
new organization while learning from their experience, and have
just entered into dialog with our new neighbors.
Construction of the new aluminium plant Qatalum in Qatar
was completed in 2011 with full production from September.
Qatalum is a 50/50 joint venture between Hydro and Qatar
Petroleum with 1,170 employees, of which the large majority
are foreign citizens. See page 64.
Continued restructuring
The extrusion plant at Karmøy will be closed in March 2012 as
part of our work to restructure the production of aluminium
profiles in Norway. This directly affects 94 employees at Karmøy.
The entire production and about 40 of the positions will be
transferred to Magnor and Raufoss, strengthening operations at
the two sites. Overall, our Norwegian extrusion business has
380 employees. The planned recycling center at Karmøy, with
an initial annual capacity of 35,000 mt, has been postponed
until further notice.
2011 target
• Integrate our new colleagues from Vale Aluminium
• Secure good and efficient dialog with the local societies in Pará, Brazil
• Establish CSR action plan for community investments in Pará, Brazil
2011 result
• Integration process well underway in Brazil
• Successful dialog so far with local societies in Brazil
• CSR action plan for community investments not yet developed
2012 target
• Establish CSR action plan for community investments in Pará,
Brazil
• Restructuring processes carried out with respect to employees
and their communities
Ambition
We want to be a preferred partner worldwide due to our
responsible business operations.