Russia’s Rusal launches legal action against Rio Tinto over alumina refinery-report
2022.06.06 02:17
FILE PHOTO: The logo of Russian aluminium producer Rusal is seen on a board at the St. Petersburg International Economic Forum 2017 (SPIEF 2017) in St. Petersburg, Russia, June 1, 2017. REUTERS/Sergei Karpukhin/File Photo
SYDNEY (Reuters) – Russian aluminium producer Rusal has launched legal action against Rio Tinto (NYSE:RIO) seeking to restore access to its 20% share of the alumina produced at a jointly-owned refiner in Queensland, Australian media reported on Sunday.
Rusal alleged Rio had no right to take full control of Queensland Alumina (OTC:AWCMY) Ltd (QAL) following Australia’s sanctions on Russia over its actions in Ukraine, The Australian newspaper said in a report citing filings in the Australian Federal Court.
Rio declined to comment on the report while Rusal could not be immediately reached.
QAL is an alumina refinery joint-venture located in Gladstone in Australia’s Queensland state. Rio owns 80% of the refinery, while Rusal, the world’s second-largest aluminium producer, owns the rest.
Rusal argued Rio invalidly triggered contractual provisions to take control of QAL, effectively stripping its right to its proportional share of the output from the refinery, worth about 750,000 tonnes of alumina each year, the report said.
Rio in April cut Rusal’s access to production and management at the refiner under an Australian ban against exporting alumina and aluminium ores, including bauxite, to Russia.
It also placed sanctions on Russian billionaire and former president of Rusal, Oleg Deripaska, who holds a stake in the refinery.
