Rio Tinto, one of Australia’s largest mining companies, has launched an urgent review of its partnership agreement with Russian aluminium giant Rusal in Queensland as it seeks to sever all business ties to Russia because of the war in Ukraine.

In the latest high-profile corporate withdrawal from Russia, Rio Tinto on Thursday said it was in the process of “terminating all commercial relationships it has with any Russian business”.

The announcement raises questions about the future of Rio Tinto’s majority-owned Queensland Alumina Limited (QAL) in Gladstone, one of Australia’s largest alumina refineries, which is 20 per cent owned by Russia’s Rusal.

The joint-venture agreement between Rio Tinto and Rusal has been placed under immediate review, sources said on Thursday. However, Rio Tinto was expected to face difficulties in unwinding the deal without official sanctions against Rusal or the minority partner’s consent, they added. Rio Tinto may be required to buy out Rusal’s stake in the venture.

Rio Tinto has previously indicated it was confident there were “appropriate structures” in place to ensure operations at the aluminium business would not be disrupted.

The mining giant’s pledge to cut ties with Russia will also affect the company’s giant Oyu Tolgoi copper-cold mine in landlocked Mongolia, which buys fuel and other goods from neighbouring Russia.

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Confirmation of Rio Tinto’s position on Russia came shortly after Bold Baatar, the miner’s head of copper, indicated at an energy conference in Houston that the company was searching for alternative fuel sources in Mongolia but might be unable to stop buying from Russia altogether.

Russia has been facing mounting economic sanctions from Western governments and a large-scale retreat of foreign firms since launching its invasion of Ukraine on February 24.