RIO.US has taken full control of an Australian alumina refinery jointly owned by Rusal, taking advantage of US and western sanctions against Russia over the war in Ukraine, formally excluding Rusal from the management and production of the plant while the Australian sanctions were in effect.
Previously, Rusal had a 20 per cent stake in Queensland Alumina Ltd. (QAL), which is run by Rio Tinto and is entitled to 20 per cent of production.
Rusal was unable to acquire Queensland Alumina Ltd, which holds a 20 per cent stake, according to Rio Tinto's latest email statement. A share of the output.
"as a result of Australian government sanctions, Rio Tinto has assumed 100 per cent capacity and management of QAL Limited until further notice."
QAL management asked Rio Tinto to step in and take full control of the asset after receiving legal advice that the operating structure did not comply with Australian sanctions, according to people familiar with the matter. After the sanctions are lifted, control will be restored to the previous joint venture structure, the person said.
Rio Tinto said it would follow all instructions from the Australian government and reiterated that it was ending business relations with Russian companies, which in fact made it difficult to achieve that goal because of its shareholding relationship.
