Russia's Rusal Disagrees With Rio Tinto Alumina Refinery Step-In
April 10 2022 - 11:06PM
Dow Jones News
By Rhiannon Hoyle
United Co. Rusal said that it disagrees with Rio Tinto PLC
taking full control of Queensland Alumina Ltd., one of Australia's
largest alumina refineries in which the Russian company has a 20%
stake, and that talks with its partner about management of the
operation are continuing.
Rio Tinto, the world's second-largest miner by market value,
last week said it had taken on "100% of the capacity and
governance" of the QAL refinery after sanctions from the Australian
government aimed at gumming up Russia's mammoth aluminum
industry.
Australia has prohibited the export of alumina, used to make
aluminum, to, or for the benefit of, Russia. It has also sanctioned
oligarch Oleg Deripaska, who owns a large stake in Rusal's majority
shareholder.
"Rusal disagrees that the operations of its subsidiary, Alumina
& Bauxite Company Ltd. (ABC), do not presently comply with the
Australian Government's sanctions and disagrees with the decision
made by QAL management that 'step-in arrangements' under the joint
venture terms have been triggered or that they are necessary," the
company said in a statement .
Rusal said that it remains committed to its investment in the
refinery, and that it is in continuing discussions with QAL and Rio
Tinto about the intent of Australian sanctions.
"Rusal anticipates a successful resolution of the discussions
with QAL and Rio Tinto and ABC resuming its participation in the
operations of the Gladstone refinery," it said.
A spokesman for Rio Tinto on Monday declined to comment. Rio
Tinto earlier said it wants to ensure the refinery, a large
employer in the Gladstone region of Australia's Queensland state,
can continue operating safely. The refinery produced 3.7 million
metric tons of alumina last year.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
(END) Dow Jones Newswires
April 10, 2022 22:51 ET (02:51 GMT)
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