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Russian aluminium giant Rusal has hit back at moves to shut it out of making management decisions at one of Australia’s largest alumina refineries, saying it remains in talks with Rio Tinto about its ongoing role at the plant.
Rio Tinto, the 80 per cent owner of Queensland Alumina Limited (QAL) in Gladstone, last week said it had stepped in to take full control of the company by exercising “step-in” rights that give it sole control on all decisions and take 100 per cent of the venture’s alumina output.
The mining heavyweight made the announcement after the federal government banned all alumina exports to Russia to curtail the country’s ability to make aluminium, a key material needed in the construction industry and the manufacturing of weapons and munitions. Oleg Deripaska, a Russian billionaire who holds a large stake in Rusal’s majority shareholder, has also been added to Australia’s list of sanctioned businessman.
Rio Tinto said it would take operational control of a Queensland alumina refinery as part of efforts to cut its business links with Russia.Credit:Will Willitts
However, in a statement filed with the Hong Kong stock exchange, Rusal said it rejected Rio Tinto’s conclusion that the step-in provisions had been triggered.
“The company disagrees that the operations of its subsidiary, Alumina & Bauxite Company Ltd, through which the company holds its stake in QAL, 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,” Rusal said.
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“Discussions with QAL and Rio Tinto are continuing about the intent of the Australian government’s sanctions and Alumina & Bauxite Company’s ongoing involvement in the operations of the Gladstone alumina refinery owned by QAL.”
Rio Tinto, one of the world’s biggest mining companies, is among a growing number of businesses in Australia and worldwide seeking to sever commercial ties with Russian businesses following Vladimir Putin’s invasion of Ukraine.
After conducting a weeks-long legal review of its partnership agreement with Rusal, Rio Tinto on Friday said it had taken 100 per cent of QAL’s capacity and governance “until further notice”.