OSLO, Oct 3 (Reuters) – Norsk Hydro will halt production at its Alunorte alumina refinery in Brazil, which has been operating at half capacity since March due to an environmental dispute, the company said on Tuesday, sending its shares down 11 percent.

The decision also triggered a shutdown of its Paragominas bauxite mine, which supplies Alunorte, and could have consequences for aluminium output at the nearby Albras plant as well as other Hydro facilities, the company said.

“While it is too early to determine the full impact, the decision to close Alunorte and Paragominas will have significant operational and financial consequences, potentially also for Hydro’s primary aluminium portfolio, including Albras,” it said in a statement.