Rusal will buy 30% of a Chinese smelter to supply alumina
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The transaction price will be 1.91 billion yuan, or $261.6 million. The final price may be adjusted depending on HWNM’s working capital and debt, but it will not exceed 2.5 billion yuan. It is being clarified that it will allow Rusal to gain access to alumina, a raw material for aluminum production.
Reuters writes that Rusal turned to the Chinese side after Australia on March 20, 2022, as part of sanctions introduced “immediate ban” on supplies of alumina and aluminum ore to Russia. According to Chinese customs data, total alumina exports to Russia last year amounted to $413.4 million.
HWNM owns and operates an alumina refinery in northern China’s Hebei province with a nominal annual production capacity of 4.8 million tonnes of metallurgical grade calcined alumina. Rusal clarified that the produced alumina will be divided “in accordance with the share of participation.” According to Reuters calculations, we are talking about 1.44 million tons of alumina – this will make up for the shortage of raw materials from Rusal, which, according to the consulting firm Aladdiny, is about 1.4 million tons.
In June it became known that Rusal plans to build an alumina refinery in the Lomonosovsky district of the Leningrad region and a new deep-water port in Ust-Luga for it. The company is ready to allocate about 400 billion rubles for these purposes. It is expected that the first stage of production in the Leningrad region with a capacity of up to 2.4 million tons per year will be put into operation by the end of 2028, the construction of the second stage of the same capacity is planned to be completed in 2032.
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