Vale has completed the transactions related to aluminum assets with Norsk Hydro, subscribing to 447,834,465 Hydro shares or 22% of the 2,035,611,206 shares outstanding, valued at about $3.5bn.

Under the terms of the agreement, Vale through its subsidiaries, transferred 51% of the total capital of Albras – Alumínio Brasileiro, 57% of the total capital of Alunorte – Alumina do Norte do Brasil, 61% of the total capital of Companhia de Alumina do Pará to Norsk Hydro for $503m in cash and 22% of Hydro’s common shares.

The firm has also sold 60% of the total capital of the Paragominas bauxite mine to Norsk Hydro to form a new entity – Mineração Paragominas – and transferred the Paragominas bauxite mine and all its other Brazilian bauxite mineral rights to the new firm.

Vale and Norsk Hydro’s combination will create one of the world’s largest integrated aluminium firms, with access to bulk bauxite reserves, captive power generation at competitive prices and technological expertise, according to Vale.